Today, the Reserve Bank released the results of 23rd 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 and terms & conditions of loans) for major economic sectors2. The latest round of the survey was conducted during Q4:2022-23 and collected senior loan officers’ assessment of credit parameters for Q4:2022-23 and expectations for Q1, Q2 and Q3 of 2023-24. Highlights: A. Assessment for Q4:2022-23 B. Expectations for Q1:2023-24 C. Expectations for Q2:2023-24 and Q3:2023-24 -
Bankers remain upbeat on loan demand during the second and third quarter of 2023-24 across the major categories of borrowers (Table 3). -
Easier loan terms and conditions are anticipated in Q2:2023-24 and Q3:2023-24. Table 1: Sector-wise Loan Demand - Net response3 | (Per cent) | Sectors | Assessment Period | Expectations Period | Q3:2022-23 | Q4:2022-23 | Q4:2022-23 | Q1:2023-24 | All Sectors | 45.0 | 44.8 | 43.3 | 43.1 | Agriculture | 33.3 | 35.0 | 41.7 | 40.0 | Mining and Quarrying Sector | 13.8 | 14.3 | 17.2 | 14.3 | Manufacturing | 43.3 | 40.0 | 41.7 | 38.3 | Infrastructure | 40.0 | 34.5 | 41.7 | 41.4 | Services | 53.3 | 46.6 | 46.7 | 34.5 | Retail/Personal | 42.6 | 41.1 | 38.9 | 39.3 | Table 2: Sector-wise Loan Terms and Conditions - Net response | (Per cent) | Sectors | Assessment Period | Expectations Period | Q3:2022-23 | Q4:2022-23 | Q4:2022-23 | Q1:2023-24 | All Sectors | 10.7 | 13.8 | 14.3 | 17.2 | Agriculture | 15.0 | 18.3 | 20.0 | 18.3 | Mining and Quarrying Sector | 0.0 | 8.9 | 10.3 | 10.7 | Manufacturing | 20.0 | 26.7 | 26.7 | 23.3 | Infrastructure | 5.0 | 10.3 | 13.3 | 8.6 | Services | 19.0 | 22.4 | 17.2 | 22.4 | Retail/Personal | 24.1 | 22.4 | 29.6 | 23.2 | Table 3: Sector-wise Expectations for extended period - Net response | (Per cent) | Sectors | Loan Demand | Loan Terms and Conditions | Q2:2023-24 | Q3:2023-24 | Q2:2023-24 | Q3:2023-24 | All Sectors | 44.8 | 50.0 | 17.2 | 24.1 | Agriculture | 40.0 | 43.3 | 18.3 | 21.7 | Mining and Quarrying Sector | 16.1 | 21.4 | 3.6 | 1.8 | Manufacturing | 35.0 | 48.3 | 16.7 | 16.7 | Infrastructure | 30.0 | 40.0 | 8.3 | 10.0 | Services | 41.4 | 41.1 | 17.2 | 20.7 | Retail/Personal | 44.6 | 42.9 | 23.2 | 25.0 | Note: Please see the excel file for time series data. |