Pvt companies’ bond investments jump multi-fold in FY25: RBI

Mumbai: Private sector companies’ investments in bonds and debentures shot up manifold in FY25, the Reserve Bank said on Monday.

Analysis of 15,919 non-government, non-financial private companies by the central bank revealed that such entities invested Rs 35,981 crore in bonds or debentures in 2024-25, as against just Rs 224 crore in the year-ago period. During this period, corporate bond issuances increased to Rs 9.87 lakh crore in FY25, compared to Rs 8.38 lakh crore in the previous fiscal year.

The yield on these instruments remained broadly in the range of 6.5-15 per cent across maturities and ratings on the BSE and NSE electronic bidding platform. Indian bond market has seen a sharp investment by the foreign investors, specifically in the government securities market after the JP Morgan announced the G-sec inclusion in to their index.

The announcement came in the second half of FY24, and the actual inclusion happened in June 2024. Further, another inclusion by Bloomberg Bond Index boosted the flows in the latter part of FY25.