Branch² Intelligence

Paritosh Kashyap, a senior banker at Kotak Mahindra Bank, advocates for a shift in Indian corporate borrowing from bank loans to the bond market to enhance portfolio management and reduce lending exposure.

IN · 2026-09-21

India — direction and magnitude withheld

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Key takeaway

Kotak Mahindra Bank's senior banker advocates shifting Indian corporate borrowing from bank loans to bonds.

  1. Step 1 · The triggerKotak Mahindra Bank's senior banker advocates a shift in corporate borrowing from bank loans to bonds, aiming to reduce concentrated lending exposure.
  2. Step 2 · Knock-onIndian banks begin to rebalance their loan portfolios, tightening lending standards for SMEs and smaller corporates as they prioritize bond market exposures.
  3. Step 3 · Reaches youSMEs dependent on bank loans face stricter approval criteria or less favorable terms, impacting their ability to access affordable credit.

The trigger is reported by the source below. The steps that follow are Branch²’s traced reasoning — how the shock could reach a business like yours, not a prediction.

Source: Livemint Companies

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