Large public sector banks, such as State Bank of India, Punjab National Bank, Canara Bank and others, are looking to expand their corporate loan portfolios, especially in sectors such as infrastructure, energy and others.

For example, the state Bank of India‘s business loan portfolio. In the same way, Canara Bank plans 10% growth in loan portfolio

“Large banks like us must participate in financing projects. We have the largest working capital and based on opportunities we will lend,” said CS Setty, chairman and managing director of SBI at a post-results conference.

Bank of India‘s business portfolio increased by 9.16% for the quarter ended September. The bank’s management said it expects healthy growth due to strong demand for growth from the energy sector. “We are one of the largest public sector banks. If we reduce our infrastructure loan portfolio, the country’s infrastructure will have a negative impact,” said Rajneesh Karnataka, Managing Director and CEO.

Another major public sector bank, Punjab National Bankalso wants to increase the size of its portfolio of companies by the end of the current financial year.

With the rise of the renewable energy sector, major renewable energy (RE) project developers, manufacturing companies, banks and financial institutions have committed nearly $386 billion, or approximately Rs 32.45 trillion, for the development of renewable energy projects by 2030. Among banks, SBI made the largest announcement with Rs 5 trillion in investment commitments, followed by PNB with Rs 79,000 crore.

Managing Director and CEO of PNB, Atul Kumar Goel said a number of solar projects were in the pipeline along with other infrastructure loans. However, the bank is selective in choosing which businesses to lend to. Furthermore, Bank of Baroda aims to grow its corporate loan portfolio by 10-11%, leading to overall advance growth of 12-14% in FY25.

Despite the RBI’s draft project finance guidelines, which recommended an increase in standard asset provisioning of up to 5% on loans, the infra loan portfolio of banks has maintained substantial growth on an annual basis and quarterly.