Bankers are highly optimistic about credit demand across sectors: RBI survey
- IBEF
- February 20, 2023
According to a survey of lenders conducted by the RBI, Bankers are "highly optimistic" about credit demand across all the main sectors in the short term. The increase of non-food credit has been hovering over 15% in FY23 after declining for the previous two years.
"We observe that bankers are highly optimistic of credit demand across all the main sectors in the coming quarters, viz., Q4:2022-23 to Q2:2023-24," a paper based on the survey released in the February bulletin of the RBI said.
In the short term, banks' perspectives on loan demand, loan terms, and their outlook across key industries are presented in the Bank Lending Survey. It captures senior loan officers' predictions for future credit demand, changes to the terms and conditions, and input on the current state of the credit market.
The top 30 scheduled commercial banks (SCBs), which represent more than 90% of the total outstanding, are included in the current survey, according to the statement.
The paper said that following the negative reaction seen during April-June 2020 and April-June 2021 due to the first and second waves of the Covid pandemic, respectively, bankers' opinions on lending in terms of assessment of credit conditions swiftly improved.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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