The budget has turned to be a mixed bag for the banking sector at a time when customer deposits have lagged credit disbursal amid a drying up of surplus liquidity.
In terms of positive, bankers view finance minister Nirmala Sitharaman's announcement to raise the outlay for PM Awas Yojana (PMAY) by 66% in the budget as a big boost to the affordable housing loan portfolio. The scheme's outlay has been raised to 179,000 crore, a sharp rise from the FY23 budget that had allocated 48,000 crore for the Housing for All'initiative.
"With the announcement of enhanced capital expenditure by 33% and increment in the outlay for PMAY by 66% to over 79,000 crore, the government has provided much-needed.
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