Synopsis

Public sector banks have revealed a corporate loan pipeline of approximately ₹7.8 lakh crore signaling increased credit demand. Companies are stepping up their investment, particularly in sectors like renewable energy and semiconductor manufacturing. Banks report varied corporate credit growth, with some institutions witnessing over 50% increase year-on-year. Mid-sized and large companies are leading the way in capital expenditure, while smaller suppliers are also finding opportunities.

Mumbai: Public sector banks have reported a combined corporate loan pipeline of about ₹7.8 lakh crore, signalling stronger credit demand as companies step up investment activity.

Punjab National Bank (PNB) said it has a corporate loan pipeline of ₹1.58 lakh crore. The lender said it had sanctioned more than ₹2.5 lakh crore of corporate loans in the first half of FY27, compared with about ₹4 lakh crore in the whole of FY26.

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Central Bank of India has a corporate loan pipeline of ₹12,000 crore, managing director and chief executive Kalyan Kumar told ET.

"We have ₹7,000 crore sanctioned loans, which are to be disbursed, and another ₹5,000 crore is still under process. We have a good pipeline with a current corporate book of ₹1.18 lakh crore, which is 32% of loans," Kumar said.

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Canara Bank has a corporate loan pipeline of about ₹47,000 crore, while Indian Bank has identified opportunities worth ₹63,000 crore. State Bank of India (SBI) accounts for the largest potential opportunity among the lenders cited. Chairman CS Setty told ET in an interview on August 28 that SBI's corporate loan prospects stood at as much as ₹5 lakh crore, supported by investment plans in renewable energy, battery storage and data centres.

Pool of bankable projects

The investment pickup is also reflected in corporate credit growth across lenders, though the pace varies widely.

RBL Bank's corporate loans grew about 58% year-on-year, while Central Bank of India's corporate credit portfolio expanded 42.05%. Axis Bank recorded 34% growth, followed by ICICI Bank at 30.6%. Canara Bank's corporate and other advances rose 17.26%, Federal Bank's corporate and investment banking portfolio expanded 17%, and HDFC Bank's corporate and other wholesale loan book grew 16.4%.

"Corporate capital expenditure is beginning to pick up across several sectors, including steel and cement," said Anu Agarwal, head of corporate banking at Kotak Mahindra Bank. "Companies in the renewable energy ecosystem, particularly those manufacturing solar modules and cells, are also investing in capacity expansion. Semiconductor manufacturing is another emerging area attracting fresh investment into India."

Agarwal said investment activity was largely being led by mid-sized and large companies, with opportunities also emerging for smaller suppliers.

RBL Bank managing director and chief executive R Subramaniakumar said the pool of bankable corporate projects was expanding as companies regained the capacity to invest and banks had sufficient capital to fund them.

"Quite a substantial number of corporates are creating a capex and there is a huge opportunity building up," Subramaniakumar said.

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