Non-banks served 45% of commercial sector's funding till October

Corporate bond issuances surge as non-bank channels match banks in FY26

Non-bank sources now nearly equal banks in financing the commercial sector, with the funding gap closing rapidly.

Almost 45 per cent of total resources raised by the sector came from non-bank sources from April to October FY26, with corporate bond issuances surpassing equity issuances. Bonds, equity issuances, and credit by non-banking financial companies (NBFCs) were the largest contributors.

 

Corporate bond issuances exceeded the entire issuance in FY25. That year, non-bank sources accounted for nearly 49 per cent of total resources mobilised by the commercial sector. The rise in non-bank funding was driven by buoyant equity issuances in a strong domestic equity