New Delih, Aug. 21 -- Cities are staring at an Rs.11.5 trillion capital expenditure requirement between FY27 and FY31, but most of them are in no shape to borrow for it. Only 223 of the country's 4,332 urban local bodies (ULBs) currently have credit-rating reports, a gap that keeps the vast majority of municipalities locked out of market-based financing, even as an indicative Rs.5.8 trillion credit opportunity exists over the same period.

The mismatch was among the central issues discussed at the two-day Public Sector Banks (PSB) Conclave 2026, held earlier this week in the national capital in the presence of Union finance minister Nirmala Sitharaman, according to people aware of the discussions and a document reviewed by Mint.

The stak...