Pace of bank lending to infrastructure shrinks to 2.3%: RBI data

Bankers say private infra offtake slow; much of funding is via public funds

Growth in bank lending to infrastructure slowed sharply to 2.3 per cent year-on-year (YoY) in January this year against 10.7 per cent a year ago, Reserve Bank of India data showed.

This moderation has come at a time when capital expenditure on various segments of infrastructure is rising.

In absolute terms, bank lending to infrastructure grew by just Rs 26,838 crore in the 12 months to January 2023 as against more than Rs 1.11 trillion in the preceding 12 months (till January 2022).

Outstanding bank credit to infrastructure stood at more than Rs 1.18 trillion in January 2023. Bankers said