PSBs to drive bond issuances to record high of Rs 1.3 lakh crore this fiscal: ICRA

Public sector banks are expected to lead bond issuances in FY2025, driven by infrastructure bonds. They are projected to account for 82-85% of total issuances, reaching Rs. 1.2-1.3 lakh crore. Tight liquidity and strong credit growth have increased reliance on bonds, with PSBs well-positioned due to their stable deposit base and large infrastructure loan book.