PSBs drive infra bond boom, raising 90% of ₹89,588 cr amid credit-deposit growth gap

Banks mopped up 75% more resources via infrastructure bond issuances in the current financial year so far, amidst deposit growth lagging credit growth and the cost of funding via this route being as competitive as term deposits.

They collectively raised ₹89,588 crore via infrastructure (infra) bond issuances in the first 11 months of the current financial year against ₹51,081 crore in the year ago period.

Public sector banks (PSBs) accounted for 90% of the total infra bond issuances in the aforementioned period against 51% in the year-ago period. Private sector banks accounted for the rest.

(The writer is with The Hindu businessline)