Banks’ loans to construction and infrastructure sectors swell 30 per cent in five years

Bank loans sanctioned to the infrastructure and construction sectors have grown by 30 per cent in the past five years. According to the Reserve Bank of India (RBI), the total loans for both the sectors have increased to Rs 14.6 trillion in March 2024 from Rs 10.8 trillion in January 2019. The RBI has proposed up to 5 per cent provisions on all existing and new project loans, making bankers jittery about the growth prospects of infrastructure loans. Moreover, the loans to the infrastructure sector have risen by nearly 31 per cent in the same period, from Rs 9.8 trillion in January 2019 to Rs 12.8 trillion as of March 2024.