Private capex cycle in India seen gaining traction as corporate, SME lending surges: Jefferies
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓India’s private capital expenditure cycle is gaining traction as corporate and SME lending surges, according to Jefferies.
- ✓Bank credit growth rose 18.1 per cent year-on-year in mid-September.
- ✓Strong machinery imports and rising GST receipts showed that recent reforms are working.
Story at a Glance
- Category
- BUSINESS
- Reported By
- Business Line
- Reading Speed
- 3 Minute(s)
- Market Focus
- India Economy
The brokerage says bank credit growth is robust, rising 18.1% y-o-y in mid-September, with corporate lending, loans to micro, small and medium industrial enterprises recording particularly strong growth
India's long-awaited private sector capital expenditure cycle may finally be gaining traction, with strong corporate and small business lending alongside rising machinery imports pointing to an improvement in investment activity, according to a report by global brokerage firm Jefferies.
The brokerage said bank credit growth has remained robust, rising 18.1 per cent year-on-year in mid-September, with corporate lending and loans to micro, small and medium industrial enterprises recording particularly strong growth. Corporate loans increased 21.6 per cent year-on-year in August, while loans to micro, small and medium industrial enterprises rose 25.5 per cent, indicating strengthening credit demand across businesses.
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