PSU bond issues hit pause as yields harden despite RBI rate cut

MUMBAI : A growing disconnect between monetary policy signals and bond market pricing is forcing state-owned borrowers to step back from planned fundraisings. On Monday, Indian Railway Finance Corp Ltd (IRFC) became the third public sector issuer—after Power Finance Corp (PFC) and Small Industries Development Bank of India (Sidbi)—to withdraw a bond issue within a week. IRFC withdrew its plans to raise up to ₹5,000 crore through zero-coupon bonds (ZCBs) as there was limited interest from investors to bid f ...