Banks see geopolitics as bigger capex risk than borrowing costs
In short
Banks said geopolitics and supply-chain problems are now a bigger worry for private investment than borrowing costs. A survey also points to more than 9% growth in industrial credit in the coming months, and public-sector banks are more concerned than private or foreign banks.
Infrastructure and auto components may see more loan demand. The report does not say how large the survey was or when it was done.
What the reporting says
Banks said geopolitical risks and supply-chain disruptions are major barriers to private-sector capital expenditure growth, according to a survey cited in the reporting. The same survey suggests banks expect more than 9% growth in industrial credit in the coming months, with public-sector banks more worried than private and foreign lenders. Infrastructure and auto components are among the sectors expected to drive credit demand. What is not stated is the survey sample or timing.
Why it matters
The reported survey links bank lending expectations to geopolitical risk and supply-chain disruptions, rather than only to interest rates. Public-sector banks appear more cautious than private and foreign banks, while infrastructure and auto components are named as likely credit-demand sectors. The immediate takeaway is that lenders still expect industrial credit growth above 9%, but the reporting does not identify the survey base or provide a timeline.