In FY26, Indian businesses are leaning more on bank lending as the dominant source of corporate funding, hitting a three-year peak in total resource mobilisation. Though foreign capital and bond markets saw activity, their scale paled compared with banks. The shift signals a notable change in how companies are financing growth, with credit markets playing a bigger role again.
Indian companies are cutting back on overseas bond issuance as domestic liquidity improves and a weaker rupee makes local borrowing more appealing. With funding costs and currency dynamics turning in favor of onshore markets, issuers are favoring local fundraising over foreign capital. The shift signals how quickly corporate debt strategies are responding to market conditions.
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