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Informist, Wednesday, Jul. 30, 2025

 

By Vaishali Tyagi 

 

MUMBAI – Axis Bank retained its position as the top corporate bond arranger for the fifth straight month in June. The private sector bank arranged bonds worth INR 124.21 billion in June through 19 deals, according to data compiled by Informist. During the month, Axis Bank solely managed six deals, for Bajaj Housing Finance, Grasim Industries, NIIF Infrastructure Finance, Rajgarh Transmission, Tata Capital Housing Finance, and Sundaram Home Finance.

 

ICICI Bank retained its second spot in June, arranging 20 deals worth INR 88.87 billion, a sharp decline from 31 deals managed in May. The bank solely arranged five deals worth INR 42.52 billion, including those of Poonawalla Fincorp, Bajaj Housing Finance, Cholamandalam Invest and Finance, and Kotak Mahindra Prime. Trust Investment Advisors climbed to the third spot in June, replacing HDFC Bank. The firm helped raise INR 86.27 billion through 29 deals in June, including five solely handled deals.

 

SBI Capital Markets climbed to the fourth spot in June, up from sixth place in May, facilitating the mobilisation of INR 49.60 billion through 17 deals. HDFC Bank, the largest private sector report, slipped to the fifth spot, managing nine deals worth INR 35.50 billion during the month.

 

A.K. Capital Services and YES Bank helped raise INR 22.55 billion and INR 22.0 billion, respectively, in June. The market saw joint participation from multiple arrangers in large-ticket issuances, such as those from Power Finance Corp. and REC. However, June witnessed a relative absence of big-ticket issuers compared to May.

 

Corporate bond issuances declined sequentially in June as issuers had front-loaded borrowings in May, anticipating a 25-basis-point rate cut by the Reserve Bank of India. Consequently, bond issuances in June declined nearly 10% from the May. Global uncertainties and the Israel-Iraq conflict also contributed to the decline, prompting some issuers to pause and reassess their fundraising plans amid the uncertain market environment.

 

Fundraising by public sector companies declined to INR 265.96 billion in June, from INR 323.99 billion in May. REC emerged as the largest issuer among public sector companies, mobilising INR 117.88 billion through four bond offerings. Power Finance Corp. followed closely, raising INR 93.55 billion through four bond deals. However, PFC had to scrap its 10-year zero-coupon bonds due to low demand for the paper.

 

Fundraising through private placements of corporate bonds increased sharply on year in June, as corporates leveraged lower borrowing costs and ample liquidity in the system. The surprise 50-basis-point cut in repo rate by the RBI in June, coupled with a 100 bps reduction in the cash reserve ratio for banks, led to a fall in borrowing costs in the corporate bond market.

 

According to data compiled by Informist, fundraising through corporate bonds rose 31% on the year to INR 867.64 billion in June through the placement of 265 bonds. In June last year, corporates had placed 247 bonds worth INR 663 billion.

 

Issuers adopted a cautious stance at the start of June as corporate bond yields remained steady ahead of the RBI's monetary policy. Market participants anticipate a surge in bond issuances in the near term, driven by favourable conditions in the corporate bond market. Faster lending rate transmission is expected to benefit the market, particularly as lenders grapple with high funding costs and intense competition for deposits.  End

 

Edited by Ashish Shirke

 

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