Companies opt for direct market borrowings than bank loans https://ift.tt/eAoaG4b

Companies are increasingly turning to commercial papers (CPs) for working capital due to lower rates compared to bank loans after policy rate cuts. CP issuances surged significantly, driven by mutual fund activity and slower rate transmission by banks. This shift has made CPs a cheaper and more flexible funding option, especially for highly-rated issuers, impacting bank lending growth.