MUMBAI, February 9: Signalling a possible revival of the industrial sector, financial institutions recorded a 20.6% rise in disbursements during the first nine months (April-December 1997) of the current fiscal.In absolute terms, the disbursements amount is pegged at Rs 32,664 crore during the first nine months of the financial year. The sanctions registered even a higher growth at 58.4% (Rs 52,466 crore) during the period.
``It hints at a revival of corporate investment intentions,'' an Industrial Development Bank of India (IDBI) release said on Monday. The institution released its annual report on Development Banking in India-1996-97 today.
The growth in sanctions and disbursements in the first three quarters of 1997-98 was in sharp contrast to a steep 14.9% fall in aggregate sanctions by at Rs 55,737 crore during 1996-97, fuelled by subdued industrial growth and a sluggish capital market. Disbursements during this period grew by 8.8% at Rs 42,067 crore.
The decline in sanctions and decelerationin disbursement were mainly due to subdued industrial growth and sluggishness in the capital markets for the second successive year reflecting a weakening of intended investment by corporates, said the report.
Cumulatively, upto end-march 1997, sanctions and disbursals by financial institutions stood at Rs 3,69,277 crore and Rs 2,52,933 crore respectively, the report said. The sanctions by all India development banks (AIDBs) posted a 16.1% fall to Rs 45,877 crore while specialised financial institutions and investment institutions recorded a growth of 0.5% and 9.1% to Rs 362 crore and Rs 7,489 crore, respectively.
During the last financial year, a bulk of financial institutions' sanctions at 81.9% was claimed by the private sector constituting Rs 44,372 crore.
Among industries, chemical and chemical products claimed 14.1% of the sanctions while power generation took 10.6%, basic metals 10.5%, textiles at 7.5% and services at 14.5%, the IDBI said.
During the period, sanctions by IDBI, IFCI, ICICI,SIDBI, IIBI (Industrial Investment bank of India), state finance corporations and state industrial development corporations to units in backward areas declined by 29.9% to Rs 13,869 crore.
However, disbursals to these areas went up by 17.4% to Rs 11,205 crore accounting for 32.5% of the total disbursements.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
