Corporate borrowing to soon return to banks: SBI MD
Times of India | 11 September 2025
Kolkata: Corporate borrowing will return to the banking system as the debt market loses appeal, according to SBI managing director (international banking, global markets) Rama Mohan Rao Amra.
Speaking to reporters on the sidelines of the 18th Banking Colloquium organised by CII in Kolkata on Wednesday, Amra said corporate lending for the banking system was less than satisfactory in the first quarter, largely because corporates were going to the debt capital market due to attractive rates.
"It was not as if corporate borrowing was low, but they went to the debt capital market. For corporate groups, the ability to tap the debt market was easier, and the interest rate lower," said Amra.
However, corporate groups will switch to the banking system from the debt market as bond yields are hardening and the debt capital market would no longer remain lucrative, he added.
He further said that while corporate loan growth in the first quarter was slow, retail and MSME loans performed well.