New Delhi. Banks are quite worried due to slow deposit growth. In fact, most people are turning to the stock market and mutual funds in search of good returns. Due to this, the number of people depositing money in banks is decreasing, while the number of people taking loans is more. In such a situation, banks may also face a cash crisis. This is the reason why banks are now being forced to raise money through bonds.

Rating agency ICRA released a report on Tuesday. According to this, banks can raise up to Rs 1.3 lakh crore through bonds during the current financial year 2024-25. This will be the highest amount ever raised by banks through bonds.

According to the report, about 85 percent of these bonds will be issued by government banks. Infrastructure-related bonds will have a higher share in this. The agency says that due to the problem of cash and a higher increase in loan disbursement than deposits, it has become necessary for banks to raise funds from alternative sources.

During the financial year 2023-24, banks raised Rs 1 lakh crore through bonds and Rs 1.1 lakh crore during the financial year 2022-23. According to the report, so far in the current financial year, banks have raised Rs 76,700 crore through bonds. This amount is 225 percent more than the same period of the previous financial year.

The agency says that private sector banks are focusing on reducing their loan-deposit ratio. Therefore, government banks are dominating in raising money through bonds in the current financial year.