Source: LiveMint.com, May 20, 2019
Outstanding bank credit to the sector was ₹8.91 lakh crore as at March 2018.
In the fiscal year ended March 2013, loans to infrastructure sector had grown by 15.83 per cent to ₹7.29 lakh crore.
In FY18 and FY17, growth in bank credit to the sector was negative at 1.7 per cent and 6.1 per cent, respectively.
“Just because banks are sitting on pile of bad loans from the infrastructure sector, we cannot completely stop lending to the sector. There are couple of companies in the sector that are doing well,” said the head of a public sector bank.
Since the growth in the manufacturing sector is subdued, banks are also willing to lend to the infrastructure segment, he said. Read the rest of this entry »