New Delhi, June 26 -- Debt growth of Indian companies have slowed down over the past five years, suggesting that they are using internal accruals for growth, noted a research report by Bank of Baroda.

The report showed that the debt of non-financial corporates rose from Rs 20.7 lakh crore in FY21 to Rs 22.6 lakh crore in FY25. This reflects a compound annual growth rate (CAGR) of 2.9 per cent, which is significantly lower than the 8.7 per cent CAGR recorded during the previous five-year period between FY15 and FY20.

The report stated, "Growth in debt in the five years ending FY25 was slower than that in the preceding five-year period".

The report also noted that the trend in debt growth has varied across the five-year period. Debt grew...