Goldman Sachs expects record India borrowing; bank, investor demand to pick up

• India is expected to gross borrow 16.5 trillion rupees ($180.13 billion) next fiscal, with a net borrowing of 11.6 trillion rupees, Goldman Sachs says

• It expects net supply of 9 trillion from states pushing overall net debt supply to 20.6 trillion rupees in FY27

• It however expects demand from major players like banks, insurance companies and provident funds to rise, which will lower the need for RBI to conduct bond purchases

• Bank credit growth is expected to pick up which will push up need to raise deposits and more demand from banks to maintain regulatory ratio

• Foreign brokerage expects banks to dominate next year, absorbing 27% of net supply followed by insurers and PFs that will buy 21% and 17% of supply respectively

($1 = 91.5980 Indian rupees)