Public sector banks up loan growth target as corporate demand sees revival

Large public sector banks (PSBs) have revised upwards their credit growth target for the current financial year. This is following revival of demand from the corporate sector and small and medium enterprises (SMEs), even as a nascent economic recovery is taking shape.

Credit growth of scheduled commercial banks had accelerated to 9.2 per cent year-on-year (YoY) by the end of December 2021 after breaching the 7 per cent-mark in November, for the first time since April 2020. 

However, loan growth contracted during the first fortnight of January 2022. This resulted in the growth figure falling to 8 per cent.

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