India’s Debt Market Faces Structural Bottlenecks: 80-90% Issuances From Financial Sector | ET Now

追加: 2026-05-27

[00:00:00]MD and group CEO carriage Mahul Pandya believed that 80 to 90% of debt issuances from financial sectors were concentration issues persist west Asia tensions have also added pressure on yields. My colleague Akanga spoke with the management earlier. Let's listen in.

[00:00:19]I think there is a funding gap and we need to structurally move towards that as we were discussing in the inaugural session and the semi- chairman also and nse CEO both pointed out uh there are a lot of you can say concentration issues which are there uh statistics are very very clear almost 80 to 90% of the datician says they're coming from the financial sector uh there is a highway concentration of the AAA and double rated bonds what would matter is that number one there there has to be a structural intervention that the other rating categories maybe the A rated bonds or the triple B rated bonds they also gain the momentum. Number two is that see the uh the sectors like infrastructure principally uh they would be looking forward to having an access to the bond market. What happens is that by the very nature of the infra infrastructure projects which have the long gestation period in the initial stages they would be funded by the bank debt. uh the moment the project is uh getting into the operational stage over there where there the refinancing aspects they come into the picture and that's exactly where uh the bond is assurances they matter a lot because they'll be giving giving a long-term tenure for that you'll be giving a stability in terms of uh the coupons and like that so that's something that we could be looking forward to I think so that's where perhaps more work also requires to be done >> okay understood talk to us about the ongoing geopolitical tensions right now is it impacting India's debt market activity I think see to the extent that uh all this inflationary pressures would be there we would be witnessing in terms of uh the pressure on the yields right there could be a possibility with the influ inflation going high there might be a requirement in terms of hiking the repo rates which had uh RBA had been long been you can say ensuring that the growth also aspects also taken alongside the inflationary pressures but the current situation might warrant some action uh in the future so that could be having a direct impact as far as the capital markets is insuranceances are concerned.

[00:02:12]>> Okay. What is the biggest trend that uh debt investors should keep keep their eye on in this market? I think see the uh thing always would be in terms of how volatile the things are as as the things uh globally I mean they remain with the kind of uncertainty with which they are operating what impact it could be having on the different sectors in the country and these sectors and the entities from those sectors if they are tapping uh the funding markets right in that case it any investor has to keep an eye in terms of how those sectors are impacted how the entities their ratings also could be moving and any pressures on their cash flows and like that this is something that they should remain glued to.

[00:02:53]>> Okay. So, India's debt market is expanding but it's still relatively small compared to the developed countries. Uh so what are the biggest challenges that uh Indian debt market is facing and how are they being tackled?

[00:03:05]>> I think one of the biggest question and seman articulated it beautifully. He not only mentioned in terms of what structural what are the structural issues which are plaguing the growth of the bond market. He also mentioned in terms of what kind of the structural interventions which could be there to support it. Right? So we talked about the heavy concentration from the financial sector which is in a way crowding out the other sectors. We talked about the heavy concentration in terms of the triple A and the double rated bonds at the expense of the lower category bonds. Right? Then uh we we also talked about the liquidity the the lack of liquidity in the market right for the corporate bond issuances and the supporting mechanisms that he mentioned I mean with the honorable finance minister having mentioned about the market making mechanisms right how we could be moving for there the EBP platform which could be there and the things which the semen outlined uh in his keynote address I think these are the ones in which we could be moving forward to to support the corporate bond market with the requisite liquidity making also