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Banks’ corporate lending set to revive in Oct-March

Financial Express Delhi

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October 04, 2025

Hope builds on the back of policy tailwinds, GST 2.0

- RAGHAVENDRA KAMATH & MAHESH NAYAK

AFTER A SUBDUED first half marked by geopolitical headwinds and tepid project activity, corporate lending by banks is poised for a revival in the second half of this fiscal.

The Reserve Bank of India’s (RBI) recent policy measures and the cut in the goods and services tax (GST) are expected to unlock fresh credit demand, corporate leaders and bankers said.

Amit Kumar Sinha, MD & CEO of Mahindra Lifespace Developers, expects businesses to invest more in capex. This will create opportunities for companies to access both banks and capital markets, he said. “The steam in equity markets is not lost yet. Most corporates may continue to seek an optimal balance between the two.”

A senior executive from the Tata group is also bullish and expects lending to corporates to pick up in the second half as infra spending was low due to the monsoon.

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