Indian banks, PSUs plan $3.5 bn bond sales ahead of GDP data, RBI policy

Mumbai: Indian banks and PSUs are racing to raise up to $3.5 billion through bonds ahead of India’s GDP data and monetary policy decision amid concerns that interest rates might not be slashed, bankers said

on Monday.

State-owned PFC, IRFC, SIDBI, and NABARD aim to raise a combined 240 billion rupees ($2.7 billion), while Axis Bank and Bank of India plan to raise 75 billion rupees, according to bankers, who did not want to be named.

India’s GDP data for Q2 FY26 is scheduled for Friday and the monetary policy decision will follow on

December 5.

While economists expect the RBI to cut rates, overnight index swaps - a key indicator of short-term rate expectations - suggest a status quo, Reuters reported.

A stronger growth print will also reduce the likelihood of rate cuts.

“Issuers are front-loading their bond plans because hopes of a December rate cut have diminished. Indian companies have raised 6.87 trillion rupees via bonds so far this fiscal year that ends March 2026, according to data aggregator Prime Database.