Corporates Turn to Banks as Bond Yields Harden
Companies may return to commercial banks for loans as bond yields rise, according to SBI officials. With reduced debt paper issuances, banks are set to become a key credit source. State banks are equipped to support growth and are focusing on sectors like renewable energy.
- Country:
- India
Corporates may shift their credit sourcing back to commercial banks due to increasing bond yields in the debt market, a State Bank of India (SBI) official revealed on Wednesday.
Rama Mohan Rao Amara, managing director of SBI, noted a visible trend where companies are returning to banks for credit amid declining debt paper issuances.
This development comes as ten-year and 30-year state government bond yields have surged, potentially prompting more reliance on banks as a credit source. The situation remains dynamic, requiring ongoing observation.
- READ MORE ON:
- corporates
- banks
- credit
- SBI
- bond yields
- debt market
- economy
- growth
- renewable energy
- digitalisation
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