Indian bankers optimistic for loan demand: survey

Except for mining and quarrying, demand is expected to hold up through September.

Bankers in India remain optimistic regarding loan demand from major sectors for the upcoming three quarters, according to a central bank survey.

Except for mining and quarrying, bankers in India are said to remain optimistic about loan demand across all major sectors for the Q2 period between July-September 2024, the Reserve Bank of India (RBI) said.

Easy loan terms and conditions are expected to prevail during the quarter.

However, lower optimism is reported for retail and personal loans, the RBI said.

The same optimism on loan demand is reflected for Q3 (Oct-Dec 2024) and Q4 (Jan-Mar 2025).

Two exceptions are the mining sector and the infrastructure sector. Survey respondents do not expect easy loan terms and conditions to be extended to the mining sector. 

The infrastructure sector loans are perceived to witness relatively less softer loan terms, the RBI said.