look news india
Mumbai: Corporate loans have increased significantly in the June quarter of the current financial year, indicating increased capital expenditure by companies. A research firm's analysis of the loan book of about twenty private and public sector banks in the country shows a 21 per cent increase in corporate loans in the June quarter. However, it is still becoming difficult for small companies to get loans.
Looking at the increase in the loan book, it can be said that capital expenditure is being increased by private companies.
In the August bulletin of the Reserve Bank, capital expenditure in the current financial year has been estimated to increase to Rs 2.45 lakh crore, from Rs 1.59 lakh crore in the previous financial year.
The corporate loan book of banks has seen an increase, led by SBI. SBI's corporate loan book grew by Rs 1.57 lakh crore to Rs 11.39 lakh crore in the June quarter.
The rise in corporate debt supports the Reserve Bank's recent claim that private capital expenditure in the country is slowly drying up.
In the financial year 2024, about 944 projects were getting support from banks and financial institutions. The estimated cost of these 944 projects was estimated at Rs 3,90,978 crore. In the financial year 2023, 547 projects with an expenditure of Rs 2,66,546 crore were getting support from banks and financial institutions.
After the Corona period, capital expenditure by private companies in the country is gradually increasing.
However, another report claimed that micro, small and medium enterprises (MSMEs) are not getting financial assistance due to lack of assets.
The report quoted Reserve Bank of India Deputy Governor Swaminathan Jai as saying that small business houses do not have enough assets to show as collateral to get loans.
Fundraising challenges for NBFCs, AUM growth expected to remain slow
New Delhi: Non-banking financial companies (NBFCs) may face challenges related to availability of funds. Due to this, their growth may remain sluggish compared to their rapid expansion in the last two financial years. This has been estimated in a report by rating agency ICRA.
The report said that the growth rate of assets under management (AUM) of NBFCs may fall to between 13 and 15 per cent during the current financial year, which is less than 18 per cent in the previous financial year. One of the biggest challenges in the path of growth is raising funds for financing.
The report said the estimated debt financing required for AUM expansion is between Rs. 5.6 and Rs. 6 lakh crore. The report said that amid huge demand and unmet credit requirements, NBFC AUM growth is likely to slow down. They face difficulties in raising funds, which was seen in the first quarter of the current financial year.
