While Gujarat got funds for 154 projects accounting for 14.7 percent (up from 14 percent in 2022-23) of the Rs 3.9 lakh crore financed by banks and financial institutions , Uttar Pradesh got funds for 69 projects accounting for 7.6 percent ( down from 16.2 percent in 2022-23), according to the study published by the Reserve Bank in its latest monthly bulletin. Uttar Pradesh however continued to figure in the list of top five states to attract project funding from banks and financial institutions.
Maharashtra, Andhra Pradesh and Gujarat were the others in the list of top five states to get bank funds for projects in their respective states. These five sates together accounted for about 55 per cent of the total cost of projects sanctioned during 2023-24. Odisha slipped to the sixth spot in 2023-24 accounting for just about 7.6 percent share in total project financed by banks and financial institutions from the third spot in 2022-23 during which it accounted for 11.8 percent share.
“The total cost of projects sanctioned by banks/FIs increased to a record high of Rs3,90,978 crore. Infrastructure sector continued to attract the major share of envisaged capital investment, led by ‘Roads & Bridges’ and ‘Power’ sectors, reflecting the government push towards infrastructure development” said Kamal Gupta, Rajesh B Kavediya, Sukti Khandekar and Snigdha Yogindran. The authors are from Department of Statistics and Information Management. The views expressed in the article are those of the authors and do not represent the views of the Reserve Bank of India.
The significant rise in envisaged capital investment of private corporates, based on the projects sanctioned by banks/FIs during 2023-24, points to upbeat investment cycle, the study noted.