A Study on the Indian Corporate Bond Market

India’s corporate bond market has increased steadily over the years. From INR 20.2tn in FY16 the outstanding corporate bond increased to INR 49.9tn in FYTD23. Corporate bond outstanding as percentage of GDP however, came down to 15% in FY23 till December from 18.2% in FY21 due to higher nominal GDP.

A well-developed bond market can serve as a key source of financing for institutions in a country. It brings together Issuers like corporates, governments, local and municipal bodies, etc., with the Investors like banks, insurance, pension funds, etc. At Yubi, we did a comparative and a detailed study to understand the Indian corporate bond market as a tool of financing. 

India’s corporate bond is outstanding as percentage of GDP in FY22 was about ~17% which is less than its major Asian peers despite the fact that the market has grown over the years with various regulatory efforts. Korea’s outstanding corporate bond as a percentage of GDP is about 86.5% in 2021. Similarly, outstanding corporate bonds as a percentage of GDP is also high in Malaysia, Hong Kong, Singapore and China. The report delves deeper and includes insights on: 

  • Comparative analysis of corporate bonds in Asian countries with accurate numbers.
  • Various ways to utilise the full potential of corporate bonds.  
  • Corporate bond regulation by SEBI: Securities and Exchange Board of India ( SEBI) has announced many regulations with regards to corporate bonds which is briefly explained in the study.
  • The need to indulge foreign investors. 

To know more about India’s corporate bond market, get access to the e-book, modelled,  and curated for financial enthusiasts.