FICCI-IBA Report: Corporate Borrowing Shifts Away from Banks
Why in the news
A FICCI-IBA study shows firms moving away from bank loans, with fresh openings and challenges for lenders.
| Theme | Finding |
|---|---|
| Funding shift | Capital markets, private credit, ECBs, AIFs and REITs |
| Loan mix | Working capital beats long-term capex |
| Opex-to-assets | Up 26 bps, so little productivity gain |
| AI/GenAI | Can automate 35-40% of low-value tasks |
Key points
- Banks should fund sunrise sectors and large infrastructure.
- Informal workers face low credit access; formalising them could take over a decade, yet well-underwritten new-to-credit loans perform like existing customers.
- MSME credit gains from Udyam, GST, UPI and guarantees.
- DPI 2.0: Account Aggregator and Unified Lending Interface.
Exam angle
- Report: Charting New Frontiers.
- Prepared by: BCG.