Apr 5, 2016

Private Sector Banks role in India's Infrastructure

Two thirds of  Private sector infrastructure banks balance sheets represents loans and Investments to 25 Industrial groups, remaining 1/3 balance sheets represents Tier 2 Infra Developer (construction, Mining, engineering).

India spends 5% of GDP in infrastructure.

Cons of Private Financiers:
Infra banks do too much concentration on Risks

Goal: India's Infrastructure
India’s goal is $1 trillion of spending on roads, ports, power and other infrastructure from 2012 to 2017. About 75 percent of this would need to be financed through debt

Banks Credits to Infra Segements

There was a fall in bank credit growth in the cement, power, and road sector. However, the pace of credit growth for iron and steel has increased.


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