The nineteenth round of the FICCI-IBA survey, covering the period January to June 2024 was released just now. A total of 22 banks including public sector, private sector and foreign banks participated in the survey. These banks together represent about 67 per cent of the banking industry, as classified by asset size. The Indian economy and the banking sector remain robust and resilient. With improved balance sheets, banks are supporting economic activity through sustained credit expansion. However, credit growth is outpacing deposit growth, which could lead to liquidity challenges for the banking system. Raising deposits to keep pace with the loan growth and keeping the credit cost low remains on the top of banks' agenda. The survey findings show that long term credit demand has seen continued growth for sectors such as Infrastructure, Metals, Iron and Steel, Engineering. Infrastructure is witnessing an increase in credit flow with 77 per cent of the respondents indicating an increase in long-term loans. This could be attributable to the government's capital expenditure push for the infrastructure sector.

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