Modi’s infra push boosts credit growth, reverses 2-year trend; here’s how much power, telecom receive

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Updated: Mar 20, 2019 2:19 PM

The total credit outstanding to the sector surged by more than Rs 95,000 crore or 10.8 per cent between April 2018 and January 2019 to Rs 9.86 lakh crore, Reserve Bank of India (RBI) data showed.

Of credit surge of over Rs 95,600 crore within the infrastructure sector, 36 per cent came to the power sector.

Modi government’s sustained push in the infrastructure sector has led to rise in bank credit growth, reversing the fall seen in the last 2 years. The total credit outstanding to the sector surged by more than Rs 95,000 crore or 10.8 per cent between April 2018 and January 2019 to Rs 9.86 lakh crore, Reserve Bank of India (RBI) data showed.

While the credit stood at Rs 9.64 lakh crore as of March 2016, it fell to Rs 9.06 lakh crore by March 2017 and further plunged to Rs 8.90 lakh crore by March 2018.

Also read: Here’s proof of rising unemployment; buried report reveals shrinking male workforce

Of credit surge of over Rs 95,600 crore within the infrastructure sector, 36 per cent came to the power sector, while 22.6 per cent and 8.6 per cent came to roads and telecom, respectively. Other infrastructure sector, gained 33 per cent of the bank credit.

The overall bank credit  to infrastructure rose from (-)1.3 per cent in April to 12.6 per cent in January 2019, even as the number of overall credit has risen from 10.4 per cent in April 2018 to 13.1 per cent. An analysis by The Indian Express of the RBI data shows that the given pick-up in credit growth for the industry is largely on led by rise in bank credit.

During April 2018 to January 2019, credit to overall industry including infrastructure surged from 1 per cent in April 2018 to 5.2 per cent in January 2019, mainly on account of rise in the infra sector, the data noted.

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