Funds raised by banks through private placements, qualified institutional placement and preferential allotment in FY26 have shrunk in comparison to the last three financial years, data released by the Reserve Bank of India (RBI) showed.

In the current financial year up to November, banks have raised Rs 58,912 crore through 17 private placement issues, the lowest since FY23.

The RBI’s provisional data for this period includes the resources raised by public, private sector and foreign banks.

For FY25, banks mobilised funds worth Rs 1,49,418 crore from 36 issues, up from Rs 1,30,806 crore in FY24 and Rs 1,23,387 crore from 40 offerings in FY23. This was the period when banks took to private placements to shore up capital even as deposits lagged behind credit growth.

The slowdown in FY26 implies that banks are relying on alternative funding resources. Government bond yields have gone up and the RBI has assured of supporting liquidity.

Public sector banks made up 70% of the funds raised by all banks in the current fiscal up to November, raising Rs 40,719 crore via six issues.

Private banks raised the remaining Rs 18,192 crore via 11 issues in FY26.

Foreign banks were inactive during this period, the RBI's report on trend and progress of banking in India 2024-25 showed.

In FY25, public sector banks had a higher share with a fundraise of Rs 1,33,000 crore through 28 issues, accounting for a whopping 89% of resources raised by all banks. Private banks raised Rs 16,419 crore through eight issues during the fiscal.

“Resources raised by banks through private placement of debt, qualified institutional placement and preferential allotment of equity in the capital market increased during 2024- 25. The increase was largely driven by public sector banks, which recorded a growth of 36.6% in total amount raised through private placements, mostly through debt instruments,” the RBI report said.