The Reserve Bank of India (RBI) in its latest data has showed private sector companies in India significantly increased their investments in bonds and debentures during FY25. According to the RBI's analysis of 15,919 non-government and non-financial private entities, such entities invested Rs 35,981 crore in bonds or debentures in FY25, as against just Rs 224 crore in the year-ago period.

RBI said during this period, corporate bond issuance also surged, reaching Rs 9.87 lakh crore in FY25 as compared to Rs 8.38 lakh crore in FY24. The yield on these instruments remained broadly in the range of 6.5-15 per cent across maturities and ratings on the BSE and NSE electronic bidding platform. 

Further, RBI data showed that investment by these select entities in equity instruments or shares fell by 62.25 per cent year-on-year to Rs 59,945 crore in FY25, from Rs 1.59 lakh crore in FY24. Similarly, investment in mutual funds fell to Rs 3,656 crore in FY25, as compared to Rs 6,700 crore in FY24. 

During FY25, the share of external sources of funds in total funds increased to 53.6 per from 52.3 per cent in previous year largely due to current liability. Operating profit and profit after tax continued to show double digit growth in FY25 on the top of high growth in the preceding year. Net profit margin and return on equity (profit after tax to net worth) improved during FY25 mainly due to the services sector.