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PSU bond issuances decline 37% in FY26 as more funding options emerge
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Cumulative annual growth rate (CAGR) in taxable bond issuances was about 1.7 per cent between FY17 and FY26.
At the same time, capital expenditure by Central public sector enterprises (CPSEs) increased 7.1 per cent to ₹8.64 lakh crore in FY26 from ₹8.07 lakh crore in FY25.
Why lower bond dependenceThe FY26 numbers suggest that higher investment did not automatically translate into higher bond issuance.
Also, with interest rates moving down, bank loans seem to have become more viable.
Few large PSUs have withdrawn their issuances too due to volatile market.”