Wed Feb 26 22:10:00 UTC 2025: ## Indian Banks Increase Infrastructure Bond Issuances by 75%
**Mumbai, February 27, 2025** – Indian banks have significantly boosted their infrastructure financing through bond issuances this fiscal year, according to data released by *The Hindu Business Line*. Issuances totaled ₹89,588 crore in the first eleven months, a 75% increase compared to ₹51,081 crore during the same period last year.
This surge in infrastructure bond issuances comes amidst slower deposit growth compared to credit growth, making this funding method increasingly attractive. The cost of funding through infrastructure bonds is reported to be as competitive as term deposits.
Public sector banks were the primary drivers of this increase, accounting for 90% of the total issuances, up from 51% the previous year. Private sector banks contributed the remaining 10%. The data suggests a significant shift towards infrastructure bond financing as a key strategy for Indian banks.
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