RBI Report: PSBs' Fundraise Via Private Placements Outmatches Private Banks

Fundraising by private sector banks through private placement of debt, qualified institutional placement and preferential allotment has decreased over the last three financial years while that of public sector banks has increased, the Reserve Bank of India's report on trend and progress of banking in India 2023-24 showed.

The fundraise by private sector lenders via these routes has declined from Rs 40,034 crore in fiscal 2022 to Rs 33,426 crore in fiscal 2024.

In comparison, the PSBs' fundraise via private placements increased from Rs 70,719 crore in fiscal 2022 to Rs 97,380 crore in fiscal 2024.

As of October this fiscal, private banks raised Rs 14,519 crore via these routes, which is 84% lower as compared to Rs 90,811 crore raised by PSBs in the same period.

Notably, six private banks raised funds through private placements till October in fiscal 2025, as against 17 public sector lenders. This ratio was 16:34 in fiscal 2022.

"PSBs (public sector banks) recorded a notable increase of 38.6% in total amount raised during 2023-24 compared to 2022-23," the report pointed out.

Overall, banks raised Rs 1.05 lakh crore through private placement of debt in the current fiscal till October, as against Rs 1.3 lakh crore raised in fiscal 2024 and Rs 1.23 lakh crore in fiscal 2023.