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BankingNABARD / RBI

Bank Fundraising Hits Three-Year Low, Says RBI Report

2 January 20261 min read
BANKING & FINANCEBank FundraisingHits Three-YearLow, Says RBIReport2 January 2026safalsetu.com

Why in the news

The RBI reported the weakest bank capital-market fundraising of the last three financial years, reversing the FY23 to FY25 rise.

Reasons

  • Ample deposits at some banks.
  • Higher bond yields reduced appetite for long-term debt.
  • Tight liquidity and rate-cycle uncertainty.
  • Banks reviewing funding mix after relying on private placements.

Significance

  • Shift in bank funding strategy.
  • Link to capital adequacy, credit growth and financial stability.
  • Shows that raising capital responds to interest rates and liquidity.

Exam angle

  • Routes: private placement, QIP, preferential allotment.

Test yourself

1. RBI reported that bank fundraising through capital market routes fell to its lowest level in how many financial years?

Fundraising dropped to the lowest in the last three financial years.

2. By how much did funds raised by public sector banks grow in FY25, per RBI?

PSBs saw 36.6% growth in funds raised, largely through debt instruments.

3. Which of these is a capital market route for bank fundraising mentioned by RBI?

Private placements, QIPs and preferential allotments are the routes covered.

This topic is part of Daily Current Affairs 30 & 31 December 2025 (19 topics).

All topics of the dayDay quizDecember 2025

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