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India’s pick-up in capex cycle positive for banking sector
November 01, 2022
The global economy has just come out of the Covid danger and so is the Indian economy. During Covid times, our economy found a new way of functioning with the help of technology, and we saw the technology sector doing well.
However, during those times the credit growth was dismal and was rather at a multi-year low, and deposits growth became robust, as more & more people rushed to banks with deposits.
As a result, the banking sector did not perform well during those times. However, in the last 2 quarters, we have seen that credit growth has started picking up across the banking sector.
This also implies that various businesses are having a positive outlook on the economy going forward & they are comfortable with borrowing money for new projects as well as for the expansion of capacities.
Moreover, in Budget FY23, the government stepped up the capital expenditure by 35.4% to ₹7.50 lakh crore for 2022-23 from the previous ₹5.54 lakh crore. This makes it 2.9% of the GDP.
This measure was taken to support the development for which heavy capital expenditure is required.
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- 4-IN-1 Professional Diploma in Banking, Financial Services & Insurance (PDBFSI): https://ask.careers/courses/4-in-1-professional-diploma-in-banking-financial-services-insurance-pdbfsi/
- Mumbai: https://ask.careers/cities/mumbai/
- TSCFM: https://ask.careers/institutes/tscfm/
