Higher capex, infra push, green initiatives to drive up demand for bank funds

Chennai, Feb 5 The Indian banking sector is happy with the Union Budget for 2023-24 presented by Finance Minister Nirmala Sitharaman.

For the banking sector which is seeing an increased credit offtake in the recent times, is expecting more business due to increased allocation for capital investment and also inflow of cash with the increase in rebate for tax payers under the Income Tax Act which is expected to bring them some low cost funds.

While that is for the bankers, Sitharaman too had announcements for the investors and banking public. She said to improve bank governance and enhance investors' protection, certain amendments to the Banking Regulation Act, the Banking Companies Act and the Reserve Bank of India Act are proposed.

However Sitharaman declined to elaborate on the proposed amendments when queried by the media as the Parliament session is on.

Be that as it may, Sitharaman said the capital investment outlay for FY24 is being increased steeply for the third year in a row by 33 per cent to Rs 10 lakh crore, which would be 3.3 per cent of the gross domestic product