India’s bank lending is growing at the fastest pace in nearly two years, driven by companies increasingly choosing bank loans rather than issuing bonds. Bloomberg reports that credit expansion accelerates as firms treat loans as a cheaper financing option. Business Standard cites Reserve Bank of India data showing credit growth rises to 16.2% in the year through May 15, marking the fastest rate since June 2024. Taken together, the reports indicate a broad shift in corporate funding choices, with bank credit providing a larger share of financing compared with bond markets. The Reserve Bank of India data referenced points to ongoing momentum in overall credit expansion, while the coverage on bond versus loan preferences explains the underlying demand-side factor. The information suggests that corporate borrowers’ financing strategies are helping push lending growth higher across the banking system, even as bond issuance is comparatively less favored.