In the first nine months of fiscal year 2022-23, non-food credits increased by 11.9% to Rs 133.04 lakhs from Rs 118.91 lakhs at the end of March 2022.
Bankers remain aggressive in lending demand across all major borrower categories during the final quarter of the current fiscal year and the first half of fiscal 2023-24.
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According to an article published in the February issue of the Reserve Bank of India, “Bankers are optimistic about credit demand across all major sectors in the coming quarters, i.e. Q4 2022-23 to Q2 2023-24. I am very optimistic.” Lenders are also hopeful that terms on future loans will be eased, it said.
In the first nine months of fiscal year 2022-23, non-food credits increased by 11.9% to Rs 133.04 lakhs from Rs 118.91 lakhs at the end of March 2022.
The Bank of Baroda said in a recent report that it expects bank credit to be around 14-15% in fiscal 2023. The Bank Lending Survey for Q3 2022-23 released earlier this month by the Reserve Bank of India (RBI) showed a net banker response of 43.3% to loan demand across all sectors in Q4 FY2023. bottom.
The net response is calculated as the percentage difference between banks reporting an increase/optimism and a decrease/pessimism for each parameter. The range is -100 to 100. A value greater than 0 indicates expansion or optimism, and a value less than 0 indicates contraction or pessimism.
In Q4 FY23, the largest demand for loans will be in the services sector (46.7% net responses), followed by infrastructure, manufacturing and agriculture (41.7% net responses each).
The survey found a 38.9% net response to demand for personal loans in the fourth quarter.
The study further showed that the net response to loan demand across all sectors was 46.4% in Q1-2024 and 48.2% in Q2-2024. Banks’ net response to demand for loans from the infrastructure sector was 37.5% in Q1 and 44.6% in Q2.
Bankers said the federal budget’s announcement of Rs 100 crore for capital investment in 2023-24 will boost the demand for loans from infrastructure and related sectors such as cement and steel.
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