The removal of drives by the Indian corporate sector may continue. As companies across the industry are actively repaying their debts and strengthening their balance sheets, NDTV profit.
This trend, which began after the pandemic, gained momentum from 2024-25 (April-March).
Bankers and rating agencies expect this trend to continue in the current fiscal year due to the continued global uncertainty associated with growing US tariffs and tensions between India and Pakistan.
State-run bank officials say growth in bank credit for businesses is being eased as businesses prioritize debt reduction over new investments, not because of lack of liquidity.
Overall non-food credit growth increased 12% year-on-year in March, compared to 16.3% in the previous year, according to monthly data from the Reserve Bank of India. The loans expanded to an industry that consists of micro and small businesses but excludes services, with an annual increase of 8% in March, unchanged from the previous year.
