Bank Lending in India Hits Two-Year High as Companies Skip Bonds

Bank lending in India is experiencing a significant uptick, reaching its highest level in nearly two years, as businesses opt for loans over bonds for more affordable financing options. This shift indicates a growing confidence among companies to leverage cheaper credit, likely influenced by favorable interest rates. The trend could bolster economic growth by ensuring more capital flows into the business sector, but it also raises questions about companies' long-term debt levels and their reliance on bank financing instead of market-based funding.