Outstanding bank credit to key infrastructure sectors has increased from over Rs 13 trillion in 2012 to over Rs 20 trillion in 2016. Most of the bank finances remain deployed in the power sector, followed by roads.
The Reserve Bank of India (RBI) has held the repurchase rate, or repo rates, steady since February 2016 due to rising inflation. However, it has tightened the spread between reverse repo and repo rates, which should aid liquidity within the banking system.
