The Hindu Business Line : Bankers remain optimistic

Chennai, March 13 A year ago, ICICI Bank’s Managing Director, Mr K.V. Kamath, said the investment pipeline of corporate India was of the order of $400 to $500 billion (or about Rs 20 lakh crore).

About six weeks ago, he revised that estimate to about $750 billion (Rs 30 lakh crore).

He also added that a bulk of this would come from companies themselves.

And, importantly, added that the Indian growth story would continue for another 15 years.

Nothing that has happened in these six weeks — whether it is the poor IIP numbers, the anticipated shortfall in exports, the volatile rupee, weaker sales number in the auto industry, the slowing credit numbers or the anecdotal reports of lower spending — really changes the earlier optimism.

Overall credit offtake may have slowed down to 22 per cent this fiscal compared to the 30 per cent growth witnessed in the three preceding years to date.

But it may be noted that the RBI had, as recently as late January, pointed out in its third quarter credit policy review that the share of industry in total loans had increased to 39 per cent on the back of a pick-up in credit flow to infrastructure, textiles, metals, engineering, vehicles and construction.

No banker is as yet seeing any visible sign of slowdown.

More Stories on : Outlook | Economy

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Rupee weakens on stock market crash, oil prices

Dollar inflows cushion rupee fall

Higher spreads, larger pool to drive used car loans segment

SBH to raise Rs 900 cr

Barclays offers service through mobile phone

Bond prices slip on profit booking

Call rates unchanged

Pension scheme: Decision on actuarial firms likely next week

SBI's one day token strike

United Bank to tie up with Kotak Mahindra

Union Bank ties up with IDBI Capital to offer online trading

Bankers remain optimistic