# RBI Measures May Boost Local Bond Demand

> RBI's new measures could help Indian companies return to local bond market after rupee pressure.
- Title: RBI Measures May Boost Local Bond Demand · The Economic Times
- Summary: RBI's new measures could help Indian companies return to local bond market after rupee pressure. RBI's recent steps may encourage companies that canceled…
- Keywords: rbi, rupee, bond market, local bond demand, corporate bond issuances, indian companies, bond yields, money, business, Measures, May, Boost
- Source: The Economic Times — https://economictimes.indiatimes.com/markets/bonds/rbi-steps-may-help-local-bond-market/articleshow/134880129.cms
- Author: Shilpy Sinha
- Published: 2026-10-12T00:58:00+00:00
- Read time: 1 min
- Topics: rbi, rupee, bond market, local bond demand, corporate bond issuances, indian companies, bond yields, money, business
## RBI measures expected to stabilize rupee
RBI's weekend measures provide cushion to rupee amid high overseas yields and rising hedging costs.

> RBI steps may help local bond market Indian companies may re-enter the bond market given recent central bank measures aimed at stabilizing the rupee
## Companies reconsider bond issuances
Some issuers that canceled bond offerings earlier due to higher yields may return to the market after central bank rate increases.

> Some issuers that cancelled bond offerings earlier because yields were higher than their bank borrowing costs may return to the market now
## Yield comparison for issuers
Five-year bonds for AAA-rated quasi-public companies offer yields around 7.90% versus bank borrowing costs of 8% for large banks.

> A large bank's external benchmark-linked lending rate is 8%
## Bond funding offers cash flow flexibility
Bond coupons are paid annually or semi-annually versus monthly bank loan interest, providing cash flow flexibility for companies.

> Bonds may also offer cash-flow flexibility, as bank loan interest is generally payable monthly, while bond coupons are often paid annually or semi-annually
## RBI dollar window for oil companies
RBI opened special dollar window for Indian Oil, Bharat Petroleum and Hindustan Petroleum to meet foreign currency needs.

> The RBI has opened a special dollar window for Indian Oil, Bharat Petroleum and Hindustan Petroleum to meet their daily foreign currency requirements from Monday
## External commercial borrowings continue
External commercial borrowings may continue within regulatory limits but depend on international market conditions.

> External commercial borrowings could continue where companies secure investors within applicable regulatory limits
## What happens next
Companies may return to bond market after RBI measures stabilize rupee and reduce borrowing costs.

> RBI's intervention could therefore help contain currency volatility without changing the funding outlook much
## Key takeaway

RBI's recent steps may encourage companies that canceled bond issuances due to high yields to re-enter the market as rupee stabilizes.