Demand for bank loans rises amid hardening yields
Benchmarks Nifty22,997.35374.65FEATURED FUNDS★★★★★UTI Aggressive Hybrid Fund Regular Plan-Growth5Y Return8.52 % Invest NowFEATURED FUNDS★★★★★Motilal Oswal Midcap Fund Direct-Growth5Y Return18.82 % Invest NowEnter search…
Demand for bank loans rises amid hardening yields
Demand for bank loans rises amid hardening yields
By Atmadip Ray, ET BureauLast Updated: Oct 16, 2026, 01:27:00 AM ISTSynopsisCanara Bank and Indian Bank reported a total corporate loan pipeline of ₹1.10 lakh crore between them. The banks are experiencing steady credit demand from corporate clients amid rising bond yields. Canara Bank expects to maintain around 19% credit growth, while Indian Bank targets a 14-15% growth rate. Both banks highlighted the importance of improving deposit growth to narrow the credit-deposit gap.
Kolkata: Canara Bank and Indian Bank have ₹1.10 lakh crore of corporate loan pipeline between them, reflecting steady credit demand from India Inc amid rising bond yields that have made bank borrowing more attractive.Indian yields, now at their highest in more than three years, have risen in tandem with US yields.
Separately, the pipeline for Indian Bank stood at ₹63,000 crore and for Canara Bank ₹47,000 crore.
Bonds Corner Powered By
Demand for bank loans rises amid hardening yields
Canara Bank and Indian Bank reported a total corporate loan pipeline of ₹1.10 lakh crore between them. The banks are experiencing steady credit demand from corporate clients amid rising bond yields. Canara Bank expects to maintain around 19% credit growth, while Indian Bank targets a 14-15% growth rate. Both banks highlighted the importance of improving deposit growth to narrow the credit-deposit gap.
Supreme Court rules against Yes Bank's write-off of Rs 8,415 crore AT1 bonds
Torrent Power plans around $500 million bond sale, bankers sayYes Bank shares nosedive 20% after SC declares Rs 8,415 crore AT-1 bond write-off illegalIndian bonds breathe easy as Treasury yields decline Browse all Bonds News withIndia's bond yield hardened 44 basis points in the second quarter, prompting companies to seek bank funding more instead of market-linked resources mobilisation.
Canara Bank said that the corporate advances, along with festive demand from individuals, will help it maintain credit growth around 19% while Indian Bank plans to go a little slow at 14-15% rate.
Live Events
"We expect the momentum to sustain while we are targeting to improve the deposit growth so that the credit-deposit gap narrows," Canara Bank managing director Brajesh Kumar Singh said.
Also Read | Canara Bank has Rs 47000 crore corporate loan pipeline
Indian Bank managing director Binod Kumar also underscored the need to reduce the gap. "We are looking at 14-15% credit growth. Making profits will be the main driver behind growth," he said.
Indian Bank reported a 16.4% year-on-year credit growth led by strong traction in retail, agriculture and MSME portfolios.
The bank has a pool of ₹30,000 crore of sanctioned corporate loans, ₹10,000 crore of loans with in-principle approval and ₹23,000 crore worth of proposals are under review, Kumar said.
For Canara, the sanctioned pool is worth ₹30,000 crore while ₹17,000 crore of loans are being examined.
Canara's 19.5% year-on-year credit growth was supported by $3.2 billion (about ₹34,000 crore) lent to overseas Indians in an FCNR-B leverage strategy that allowed non-resident to borrow from banks operating in India and park a larger amount in foreign currency non-resident-bank (FCNR-B) accounts.
The bank mobilised $5.8 billion of FCNR-B deposits using the Reserve Bank of India's dedicated window aimed to boost dollar inflows and the country's foreign exchange reserves.
Add as a Reliable and Trusted News Source Add Now!
(You can now subscribe to our ETMarkets WhatsApp channel)
Read More News oncanara bankindian bankCanara BankIndian Bankbank loans demandbond yieldscorporate loan pipelinecredit growth
(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)
Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
...moreless(You can now subscribe to our ETMarkets WhatsApp channel)
Read More News oncanara bankindian bankCanara BankIndian Bankbank loans demandbond yieldscorporate loan pipelinecredit growth
(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)
Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
...morelessPrime ExclusivesInvestment IdeasStock Report PlusePaperWealth EditionUS mid-term elections – Part 2: What does it mean for Trump to lose control of Congress?
The ABCD of the US mid-term elections – Part 1: Why it matters across the globe
Curbing rupee bets: What the RBI’s new rules mean for the hedge-now-or-wait question
Brinjal, buffalo, bacteria: Inside India’s pay-for-nature system
Homebuyers wait as NCLT panel picks holes in unfinished Jaypee projects
The NBFC saga - Part 3: How one default in 2018 changed the way RBI reads risk
- 1
- 2
- 3
& personalised newslettersLogin NowUnlimited AccessStarting @ Rs120/monthGet access to exclusive stories, expert opinions &
in-depth stock reportsSubscribe NowET
Unlock Access to All Exclusives with ETPrime FREE TRIAL
15 Days Free: Unlock All ETPrime Exclusives, Market Tools & ePapers
Trial offer expiring in00 : 05 : 00
I'd rather pay ₹2599 nowUh-oh! This is an exclusive story available for selected readers only.
Worry not. You’re just a step away.
Prime Account Detected!
It seems like you're already an ETPrime member with
Login using your ET Prime credentials to enjoy all member benefits
Log out of your current logged-in account and log in again using your ET Prime credentials to enjoy all member benefits.
Unlock ETPrime's Exclusive Stories Today!
Big Price Drop! Flat 40% Off
Student Only OfferAlready a Member? Sign In nowAlready a Member? Sign In nowAlready a Member? Sign In nowOffer Exclusively For You
Save up to Rs. 700/-
ON ET PRIME MEMBERSHIP
Avail OfferOffer Exclusively For You
Get 1 Year Free
With 1 and 2-Year ET prime membership
Avail OfferOffer Exclusively For You
Get 1 Year Free
With 1 and 2-Year ET prime membership
Avail OfferOffer Exclusively For You
Get Flat 40% Off
Then ₹ 1749 for 1 year
Avail OfferOffer Exclusively For You
ET Prime at ₹ 49 for 1 month
Then ₹ 1749 for 1 year
Avail OfferSpecial Offer
Get flat 40% off on ETPrime
Avail OfferAvail OfferClaim NowAlready a Member? Sign In nowNeed Assistance?
Connect with an ETPrime expert for personalized support and guidance
+91 9484700004'; }); } if(listing) { var h3 = "You tried reading " + listArr.length + " locked stories in the past " + threshold + " days.", h4 = "Become an ET Prime member and don't miss out on these exclusive stories."; var html = '' + h3 + '
' + h4 + '
- ' + listing + '
What’s Included with
ETPrime Membership
1Exclusive Insights That Matter
Uncover the truth with our investigative stories
Make strategic moves using the real-world case studies
Read industry-specific stories to identify emerging trends
Spot opportunities with in-depth insights that matter
Trump temper on H-1B visas is forcing Indians to do these things to stay put in US
What Adani’s US indictment means for India Inc’s overseas fundraising
Why veterans like Reliance, L&T are on acquisition spree? Aswath Damodaran has an answer.
Will China’s dollar bond sale in Saudi Arabia trump the US in financial world?
Huawei launches its own OS to compete with Google and Apple. But can it win beyond China?
The problem with lab grown diamonds
Why a falling rupee is a better option for the economy
A list of top 20 momentum stocks that have delivered massive returns in one year
2Invest Wisely With Smart Market Tools & Investment Ideas
Alpha Trade
Get daily trade ideas from SEBI-registered research analysts.
Investment Ideas
Grow your wealth with stock ideas & sectoral trends.
Stock Reports Plus
All-in-one stock research with Stock Score, peer comparison & key signals.
BigBull Portfolio
Get to know where the market bulls are investing to identify the right stocks.
Stock Analyzer
Check the score based on the company's fundamentals, solvency, growth, risk & ownership to decide the right stocks.
Market Mood
Analyze the market sentiments & identify the trend reversal for strategic decisions.
Stock Talk Live at 9 AM Daily
Ask your stock queries & get assured replies by ET appointed, SEBI registered experts.
3Stay informed anytime, anywhere with ET ePaper
ePaper - Print View
Read the PDF version of ET newspaper. Download & access it offline anytime.
ePaper - Digital View
Read your daily newspaper in Digital View & get it delivered to your inbox everyday.
Wealth Edition
Manage your money efficiently with this weekly money management guide.
TOI ePaper
Read the PDF version of TOI newspaper. Download & access it offline anytime.
Deep Explainers
Explore the In-depth explanation of complex topics for everyday life decisions.
Health+ Stories
Get fitter with daily health insights committed to your well-being.
Personal Finance+ Stories
Manage your wealth better with in-depth insights & updates on finance.
5Enjoy Complimentary Subscriptions From Top Brands
Stream new documentaries from all across the world every day.
Stories you might be interested in
Figures reflect the source report and its stated period. This article is for information and is not investment advice.
