New Delhi, Oct. 14 -- Indian companies are increasingly turning to banks for loans as borrowing through bonds becomes more expensive, with banks accounting for 81 per cent of fresh credit between November 2025 and August 2026, according to a Jefferies research report.

The shift towards bank financing has helped accelerate bank credit growth to 18 per cent year-on-year in August, compared with 10 per cent growth in non-bank credit, as companies increasingly rely on banks to meet their financing requirements.

The report stated, "Banks have gained market share (73% share in stock of Nov & 81% of Nov-Aug flow), aiding growth uptick to 18% with 22% growth in corporate credit led by NBFC, trade, power etc."

Jefferies noted that companies are...