Jiraaf Bond Analyser

Over the past decade, the bond market has grown with in India has grown at a CAGR of ~25% with growth in the last 4 years at an even faster rate. Listed bond issuance in 2024 exceeded INR 9.5 lakh crore (US$ 110bn).

Bond market remains heavily dominated by government, PSU and financial service issuances. The sharp increase in NBFC borrowings and the increasing share of Non PSU issuers accessing the capital market signals that the market is widening providing more choices to investors.

With new borrowers coming to the market, there has been ~5.5x growth in issuances that are investment grade but rated BBB+ or below. From just a ~INR 3000cr borrowing in 2021, they have gone to ~INR16,500cr in 2024. Strong increase in new issuers across the rating spectrum signals the widening of the market providing good risk adjusted returns for investors.