UP Tops In Attracting Investing Funds From Bank Financial Institutions
Report
3 min read
Uttar Pradesh has topped the list of states that attracted investment funds from banks and financial institutions leaving behind states like Maharashtra and Tamil Nadu.
According to a report “Private Corporate Investment: Performance and Near Term Outlook” published in the Reserve Bank of India (RBI) August bulletin 2023 , the share of Uttar Pradesh went up from 1.1 % in 2013-14 to 16.2 % in 2022-23 .
The report is based on the total cost of projects sanctioned by banks and financial institutions to the private sector for capital investment in various states during 2022-23.
Increase in banks and financial institutions' sanctions of fund
There has been an increase in the number of projects and amount which the banks and financial institutions have sanctioned in 2022-23 as compared to 2021-22.
About 547 projects got assistance from banks and financial institutions during 2022-23 with a record high total project cost of Rs.2,66,547 crore, compared to 401 projects having a total project cost of Rs.1,41,976 crore during 2021-22.
Top state in attracting investment from banks & Financial Institutions
The top five states Uttar Pradesh, Gujarat, Odisha, Maharashtra, and Karnataka, together account for 57.2 per cent share in total project cost during 2022-23.
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Uttar Pradesh accounted for the highest share (16.2 per cent) in the total cost of projects sanctioned by banks and financial institutions followed by:
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Gujarat, 14%
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Odisha, 11.8%
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Maharashtra 7.9% and
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Karnataka 7.3%
Industry that attracted maximum investment
The infrastructure sector, comprising (a) power, (b) telecom, (c) ports and airports, (d) storage and water management, (e) special economic zone (SEZ), industrial, biotech and IT park, and (f) roads and bridges, remained the major sector accounting for 60 per cent share in the total cost of projects during 2022-23 .
Within the infrastructure sector, roads and bridges held a significant share in the total project cost, supported by the government's push towards infrastructure projects through “Bharatmala initiative.
