MUMBAI : The credit market is in a curious place. Companies that need credit don't get it from banks, while banks are keen to lend to companies that don't need it.
Lenders say there are not many takers even for the covid-19 credit lines which the government wants banks to aggressively push, two bankers said on condition of anonymity.
Whatever demand is there, is primarily from small businesses which are finding it difficult to pay staff salaries and meet fixed costs. “It is the small businesses, like a supplier to large manufacturers, that needs the covid-19 emergecy credit lines.
The working capital cycle of these small borrowers have been hit because of payment delays by their big customers during the lockdown," said the first banker