Datanomics: Bond withdrawals gain momentum on yield mismatch

Indian Inc. pulls back ₹94,500 crore in bond issuances as investor yield demands clash with issuers' pricing, with NABARD, PFC, SIDBI and IOC among the biggest withdrawals

Indian companies withdrew bond issuances worth ₹97,000 crore during financial year 2025-26 (FY26) and the first five months of FY27, largely because investors demanded higher yields than issuers were willing to offer. At ₹79,500 crore, FY26 recorded the highest withdrawals in at least a decade, while FY27 has already reached ₹17,500 crore till August 23. The largest withdrawals came from Nabard, PFC, Sidbi and IOC during this period. Such withdrawals particularly impact institutions like Nabard and NaBFID, which rely heavily on bond issuance for funding. Overall, the withdrawals point less to an outright absence of demand and more to a pricing mismatch.