Corporate credit to grow in next few quarters on working capital needs

Large-ticket loans a few quarters away despite rise in capacity utilisation: CEOs

Banks are expecting double-digit growth rates in commercial credit in the next few quarters because companies are raising funds.

With average capacity utilisation now touching 76 per cent, Indian companies are going back to the drawing board to add capacity but the plans to build new factories and plants are still some months away, say chief executive officers (CEOs).

Besides working capital loans, banks are likely to be busy with refinancing old loans.  Statistics collated by this newspaper show commercial credit is growing in double digits since 2018 after single-digit growth between April 2016 and December 2017 on demand for working capital