The engineering sector has emerged as the fastest-growing recipient of bank credit in India, recording a compound annual growth rate of 17% over the past three years.
This acceleration underscores the deepening impact of the country's infrastructure push and rising capital expenditure, according to the latest monthly data from the Reserve Bank of India (RBI).
3%. The divergence highlights a structural shift in lending patterns, with banks increasingly favoring engineering firms involved in infrastructure projects over traditional heavy industry.
While the basic metals and metal products sector holds the largest outstanding bank credit balance at ₹5.22 lakh crore, its growth rate has lagged significantly at 10.3%.
The divergence highlights a structural shift in lending patterns, with banks increasingly favoring engineering firms involved in infrastructure projects over traditional heavy industry.
This credit reallocation aligns with broader trends in India's industrial landscape, where government-led capex initiatives are driving demand for engineering services and equipment.
The sustained growth in this segment suggests that the infrastructure cycle remains robust, providing a tailwind for related equities and supply chains.