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Project loans revive from multi-year lows in FY24, infra leads the capex flavor

Money ControlMoney Control · 1m
Project loans revive from multi-year lows in FY24, infra leads the capex flavor

The Reserve Bank of India (RBI) has reported an increase in fresh loan sanctions to the private sector, signaling a recovery in long-term lending. Infrastructure projects, particularly in the power sector and road and bridge construction, continue to receive the majority of bank funding. Maharashtra and Gujarat have been the biggest recipients of private sector project loans, while Andhra Pradesh and Karnataka have also seen significant improvements. However, the current levels of loan sanctions are still lower than the peak levels observed in 2010-2011, indicating a restrained growth in corporate investment. Banks are diversifying their loan portfolios, focusing more on MSMEs and retail sectors.

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