Industrial credit picks up, poll result helps | business | Hindustan Times
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Industrial credit picks up, poll result helps

Industrial credit to fuel economic growth is back on track after hiccups in the past fiscal year over a liquidity shortfall, a demand crunch and then worries over political uncertainties.

business Updated: May 21, 2009 21:29 IST
Mahua Venkatesh

Industrial credit to fuel economic growth is back on track after hiccups in the past fiscal year over a liquidity shortfall, a demand crunch and then worries over political uncertainties.

Bankers say credit demand is set to pick up with sentiments soaring high at the prospect of a stable UPA-led government at the Centre. The hot sectors include healthcare, pharmaceuticals and fertilisers apart from steel and cement.

But much would also depend on the new government’s agenda, which would be spelt out in the full budget for 2009/10 expected in June, bankers say.

Overall credit growth is expected to touch 20-22 per cent in the first six months of the current fiscal, bankers added. In 2008-09, credit growth was less than 20 per cent.

“We expect credit demand to pick up now as elections are over and sentiments are high. Appetite for credit had shrunk though we were ready to lend but now it is again picking up,” Corporation Bank’s chairman and managing director J.M. Garg
told Hindustan Times.

Allen CA Pereira, CMD, Bank of Maharashtra said demand for credit was strong from the public sector undertakings as well.

“There is a strong demand from the PSUs and a few projects which had got delayed due to the slowdown are now taking off,” he pointed out.