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Bankers' sentiment on lending improves; loan demand to rise: RBI survey

The Covid-19 pandemic and the related lockdown led to significant contraction in loan demand across all sectors during April-June 2020

RBI
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Reserve Bank of India. Photo: Bloomberg

Abhijit Lele Mumbai
After a severe impact of the Coronavirus (Covid-19) pandemic during April-June 2020, bankers’ sentiments on lending conditions have shown a broad-based improvement. The demand for loans is expected to become better, according to RBI’s bank lending survey.

Responses suggest that perceptions on retail/personal loans, which were most severely hit during the period, have bounced back. There is lower optimism for the infrastructure, mining and quarrying sectors when compared to other major sectors. The survey is part of RBI's December 2020 bulletin.

The Covid-19 pandemic and the related lockdown led to significant contraction in loan demand across all sectors during April-June

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