Canara Bank Eyes Corporate Loan Growth

State-run Canara Bank is yet to see a secular revival in corporate credit growth, with demand limited to infrastructure, renewables and certain manufacturing segments, a top official said, hoping that rate cuts would spur consumption and lead to more borrowings by companies.

- Shayan Ghosh

Chief executive K. Satyanarayana Raju said in an interview that the bank expects the second half of the financial year to see some revival in demand for corporate loans. He said demand is limited to sectors where it was seen in the last financial year.

"We will see traction in infrastructure, roads, green energy, data centre creation, real estate (both residential and commercial), manufacturing units like solar panels, steel and cement," he said.

The Bengaluru-based bank saw a 9.8% year-on-year (y-o-y) rise in a segment it classifies as 'corporate and others', higher than loans to small businesses that grew 8.2%. At ₹4.6 trillion, 'corporate and others' loans accounted for 43% of its total advances of ₹10.7 trillion as on 31 March.