India bank bond issues to touch lifetime high in FY2023 - ICRA

ICRA

09/01/2023 07:21

** Bond issues by Indian banks to touch all-time high in
this financial year, amid tight liquidity and pick up in credit
growth, says ICRA in a note
    ** Gross bond issuances by banks are expected to rise to 1.3
trillion rupees ($15.78 billion) to 1.4 trillion rupees in
FY2023  
    ** Banks have already raised around 915 billion rupees in
April-December, surpassing the previous high of around 800
billion rupees in FY2017  
    ** "Banks also issue long-term infrastructure bonds to fund
certain specified eligible assets. These debt instruments also
boost the liquidity coverage ratio and the net stable funding
ratio," the rating agency said in a note
    ** Incremental credit expansion stood at 12.7 trillion
rupees till December, while deposit accretion continued to trail
at 8.9 trillion rupees
    ** State-run banks had a higher preference for additional
Tier-I bonds while private banks issued more Tier-II bonds
    ** Banks are also raising funds via All India Financial
Institutions, drawdown of excess on-balance sheet liquidity and
debt capital market issuances, ICRA added   
    ($1 = 82.3725 Indian rupees)
 (Reporting by Bhakti Tambe)
 ((Bhakti.Tambe@thomsonreuters.com; Twiter: https://twitter.com/TambeBhakti))