Indian lenders and state-run firms are mobilizing to raise up to $3.5 billion through bonds as they await India’s GDP data and the upcoming monetary policy decision, amidst concerns that interest rates may remain unchanged, according to bankers on Monday.
State-owned entities such as Power Finance Corp, Indian Railway Finance Corp, Small Industries Development Bank of India, and NABARD plan to collect a total of 240 billion rupees (approximately $2.7 billion), while Axis Bank and Bank of India aim to secure 75 billion rupees, sources familiar with the matter revealed, requesting anonymity due to restrictions on speaking to the media.
India’s GDP data for the July-September quarter is set to be released on Friday, followed by the monetary policy decision on December 5. Although many economists anticipate a rate cut by the central bank, overnight index swaps—an important gauge of short-term rate expectations—indicate a possibility of maintaining the current rates. A robust growth report could further diminish the chances for rate reductions.
“Issuers are front-loading their bond plans because hopes of a December rate cut have diminished,” stated Saurav Ghosh, co-founder of the online bond trading platform Jiraaf. “This is a strategy for companies to lock in current borrowing costs, as any decision to maintain rates by the six-member panel could lead to higher yields.”
Ghosh also noted that large corporate bond issuances are being well-received by institutional investors, suggesting that the market can absorb this supply effectively.
According to Prime Database, Indian corporations have raised 6.87 trillion rupees through bonds in the current fiscal year, which runs until March 2026. Even if the Reserve Bank of India decides to cut rates, Suresh Darak, founder of Bondbazaar, expressed skepticism about a significant reduction in yields.
“Only measures like open market purchases or a cut in the cash reserve ratio could exert a more substantial downward influence on yields,” Darak explained.
Published on November 24, 2025.
