India’s top four banks, namely State Bank of India, HDFC Bank, Bank of Baroda, and Axis Bank, could account for nearly 60 per cent of fresh lending to India Inc. They could be handing out loans to large corporates at rates extremely competitive that the rest of the industry finds it untenable to match them. According to sources, the price war that began in the corporate lending space back in September 2021 is barely showing signs of abatement. However, with a bit of negotiation, even the large corporates land at 7.65–7.95 per cent pricing. Pricing dynamicsA lot of reliance is being placed on the credit ratings of the corporate entities.

Source: The Hindu July 26, 2023 00:35 UTC