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In November, banks' exposure in all major industries shrank

The infrastructure sector saw a dip of 6.7% in the year to November 25

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Anup Roy Mumbai
In November, banks shrank their credit base to various industries, data from the Reserve Bank of India showed. 

The infrastructure sector saw a dip of 6.7 per cent in the year to November 25. Part of the reason could be that banks have become risk-averse in lending and, at the same time, companies are not borrowing owing to the huge unutilised capacity. 

An ancillary reason for other industries could be that after the demonetisation exercise, companies paid banks in cash through their stock of old notes, thereby reducing dues, say economists.  


 

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