Due to high yields, India's Jio Finance has delayed its intention to access the corporate debt market until the beginning of the following fiscal year, which begins on April 1, according to two people with knowledge of the situation on Friday.

The business, which is a fully-owned subsidiary of Jio Financial Services, intended to issue its first bond by the end of March after issuing its first commercial paper (CP) last week.

Days before to Jio Finance's action, Reuters revealed that State Bank of India, the largest lender in the nation by assets, had abandoned its own intention to raise Rs 15,000 crore ($1.8 billion) this fiscal year through the issue of bonds. According to the bankers, Jio Finance had planned to raise around Rs 3,000 crore ($360 million) through five-year bonds and had put out an offer with a 7.75 percent yield.

The firm is uncomfortable with these levels and has chosen to approach the market after the April monetary policy since there is no pressing need for funds, despite the fact that investors were not prepared to bid at anything below 7.90 percent, according to a source.

It is generally anticipated that the Reserve Bank of India would lower its benchmark interest rate by 25 basis points in its monetary policy announcement, which is scheduled on April 9.

According to the source, short-term yields could see a respectable correction once the new fiscal year begins. The RBI is also planning to lower the repo rate once again, with a primary focus on liquidity injection.

Since they are not authorized to speak to the media, the sources want to remain anonymous. A Reuters email seeking comment was not immediately answered by Jio Finance. Through a three-month CP, the non-banking financial business obtained Rs 1,000 crore ($120 million), yielding a 7.80% return. Crisil and Care have given its bonds the highest rating possible ('AAA') and the CP the highest rating possible ('A1+').

Despite the central bank's rate cut and cash infusion amid a high supply of debt, including from states, yields on corporate bonds rated "AAA" have increased by about 10 basis points since early February.