India’s private-sector lenders, ICICI Bank and Axis Bank, expect a rise in demand for loans following completion of the general election in May 2014.
Axis Bank chief executive, Shikha Sharma, was quoted by Reuters as saying, "We know projects have been stuck. And in an uncertain environment there haven’t been any new project announcements for a very long time."
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"So, we haven’t seen a demand pick up, neither on infrastructure nor even in the broader corporate loan market so far.
"The expectation is that when the uncertainty of the elections is behind us, then maybe risk appetite will come back and people will start to invest," Sharma told the publication.
As against the projected 15% -16% credit growth in the banking sector this fiscal, the banks said their loan books would grow at a slightly faster pace.
In order to avoid rise in bad loans, some lenders have moved their focus from corporate lending to consumer credit, which is mostly secured against borrowers’ assets.
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