Bank lending surges in FY26 as India corporate funding mix shifts sharply again

Bank loans hit a three year peak, outpacing bonds

In FY26, Indian businesses are leaning more on bank lending as the dominant source of corporate funding, hitting a three-year peak in total resource mobilisation. Though foreign capital and bond markets saw activity, their scale paled compared with banks. The shift signals a notable change in how companies are financing growth, with credit markets playing a bigger role again.