BANKS SIT ON PILE OF SANCTIONED LOANS

As per the report appearing in The Economic Times, banks are sitting on pile of sanctioned loans although their actual disbursement in the last one and half months is far less, whether short term working capital or long term loans. This is because, borrowers with working capital requirements have found alternate sources of funding like Commercial Paper (C.P.) and therefore not using their sanctioned bank limits fully.
In case of terms loans, banks are facing a longer gestation for loan disbursal, since the bulk of their sanctioned loans are for long term infrastructure projects, unlike in the past. As a result, banks have ended up lending Rs.29000 crores in October this year, against Rs.100000 crores in the corresponding month of October 2008.
Source: http://economictimes.indiatimes.com/news/news-by-industry/banking/finance-/banking/Banks-sitting-on-pile-of-sanctioned-loans/articleshow/5242896.cms