Bankers Foresee Loan Demand Uptick in Q3: RBI Survey
The Reserve Bank of India (RBI) has recently disclosed findings from its 25th quarterly Bank Lending Survey, conducted during Q2 FY24. The survey gathered insights from senior loan officers regarding credit conditions and expectations for Q3 FY24 and Q4 FY24, as well as Q1 FY25.
Participants in the survey expressed an improved outlook for loan demand in Q2 FY24, citing progress in sectors like manufacturing, services, and retail/personal loans.
Stability in loan terms and conditions was noted during this period. Looking ahead to Q3 FY24, bankers anticipate increased demand for loans, particularly in mining, infrastructure, and personal/retail sectors. Existing loan terms are expected to continue, with a slight easing projected for retail/personal loans.
Bankers maintain a positive outlook for loan demand in Q4 FY24 and Q1 FY25 across major borrower categories. While some seasonal moderation is anticipated in Q1 FY25, the survey suggests a marginal relaxation of loan terms and conditions during these periods.
The survey provides a sector-wise breakdown, highlighting robust demand in manufacturing, services, and retail/personal loans during Q2FY24. Loan terms and conditions for various sectors remained relatively consistent.
This survey painted an encouraging picture of the lending landscape in India, reflecting positive sentiment among bankers regarding loan demand and terms for the upcoming quarters.
