Foreign Banks Turn to Rupee Market Amid Slow Dollar Bond Sales

Foreign banks in India are shifting focus from dollar bonds to the country's growing rupee bond market due to tepid demand for offshore debt. High US benchmark yields and geopolitical tensions have eroded the appeal of foreign-currency debt for Indian corporates, causing issuance to drop. To compete, lenders like Standard Chartered and Barclays are widening their onshore offerings to appeal to Indian corporates shifting their borrowing to rupees. Indian firms are opting to raise money at home, with rupee bond sales on track to hit an all-time high in 2025.