Group 1 - Corporates are increasingly turning to banks for credit due to the hardening of bond yields in the debt market, with debt paper issuance volumes decreasing in the current quarter compared to the first quarter, where issuances were Rs 3 lakh crore [1][6] - Ten-year bond yields have risen by 6.6%, while 30-year state government bonds have increased to 7.5%, prompting corporates to seek bank credit if this trend continues [2][6] - Domestic banks are reported to have adequate capital to finance growth and are particularly interested in lending to emerging sectors such as renewable energy and start-ups [5][6] Group 2 - The credit to GDP ratio in India is between 65% to 70%, significantly lower than the nearly 100% ratio in developed countries, indicating potential for growth in credit demand [6] - The digital public infrastructure, such as the Unified Payments Interface (UPI), is gaining traction, reflecting a shift in customer behavior towards increased digitalization [6] - Public sector banks (PSBs) have undergone technology modernization and digitalization over the past eight years, resulting in a significant increase in return on assets, while also facing challenges in compliance and technology costs [6]
Corporates may go to banks for credit due to hardening of bond yields: SBI official
The Economic Timesยท2025-09-10 11:04