Today, the Reserve Bank released the results of 18th round of its quarterly bank lending survey (BLS)1, which captures qualitative assessment and expectations of major scheduled commercial banks (SCBs) on credit parameters (viz., loan demand, terms and conditions of loans) for major economic sectors2. The latest round of the survey collected senior loan officers’ assessment of credit parameters for Q3:2021-22 and expectations for Q4:2021-22. Owing to uncertainty driven by the COVID-19 pandemic, an additional block was included in this survey round for assessing outlook for two quarters ahead as well as three quarters ahead. Highlights: A. Assessment for Q3:2021-22 -
Banks assessed sustained improvement in loan demand for all major sectors during Q3:2021-22 (Chart 1 and Table 1). -
Terms and conditions of loans are perceived to have eased further for all categories of borrowers (Table 2). B. Expectations for Q4:2021-22 C. Expectations for Q1:2022-23 and Q2:2022-23 Table 1: Sector-wise Loan Demand - Net responses3 | (per cent) | Sectors | Assessment Period | Expectations Period | Q2:2021-22 | Q3:2021-22 | Q3:2021-22 | Q4:2021-22 | All Sectors | 42.9 | 46.6 | 51.8 | 51.7 | Agriculture | 37.9 | 36.2 | 36.2 | 44.8 | Mining and Quarrying Sector | 7.1 | 9.3 | 23.2 | 14.8 | Manufacturing | 41.1 | 46.6 | 42.9 | 44.8 | Infrastructure | 42.9 | 41.4 | 37.5 | 46.4 | Services | 42.9 | 53.6 | 48.2 | 48.2 | Retail/Personal | 44.0 | 53.8 | 58.0 | 57.7 | Table 2: Sector-wise Loan Terms and Conditions - Net responses | (per cent) | Sectors | Assessment Period | Expectations Period | Q2:2021-22 | Q3:2021-22 | Q3:2021-22 | Q4:2021-22 | All Sectors | 16.1 | 18.5 | 17.9 | 25.9 | Agriculture | 17.9 | 17.9 | 17.9 | 28.6 | Mining and Quarrying Sector | 10.7 | 12.5 | 12.5 | 16.1 | Manufacturing | 19.0 | 29.3 | 20.7 | 32.8 | Infrastructure | 12.5 | 16.1 | 14.3 | 21.4 | Services | 19.6 | 31.0 | 17.9 | 32.8 | Retail/Personal | 17.3 | 35.2 | 25.0 | 33.3 | Table 3: Sector-wise Expectations for extended period - Net responses | (per cent) | Sectors | Loan Demand | Loan Terms and Conditions | Q1:2022-23 | Q2:2022-23 | Q1:2022-23 | Q2:2022-23 | All Sectors | 56.9 | 53.4 | 29.3 | 25.9 | Agriculture | 48.3 | 50.0 | 31.0 | 31.0 | Mining and Quarrying Sector | 22.4 | 22.4 | 15.5 | 13.8 | Manufacturing | 55.0 | 50.0 | 26.7 | 26.7 | Infrastructure | 48.3 | 41.7 | 18.3 | 20.0 | Services | 55.0 | 53.3 | 30.0 | 31.7 | Retail/Personal | 48.3 | 53.3 | 31.7 | 33.3 | Note: Please see the excel file for time series data. |