Corporate Lending Rises 13% In India On Capex Push, Working Capital Uptick

India’s big banks are lending more to companies again. Corporate loan books are up, led by capex plans and higher working-capital drawdowns this quarter too.

Corporate borrowing in India is picking up after a relatively cautious phase, and the shift is showing up in bank results. State Bank of India (SBI) reported 13.4% year-on-year growth in its corporate loan book to ₹13.33 lakh crore for the quarter ended December, versus 7.1% growth in the previous quarter, as reported by The Economic Times on February 09, 2026. 

Private lenders also posted faster corporate credit growth, signalling broader demand. The immediate driver is a capex revival, along with higher working-capital utilisation across key sectors.

What’s Behind The Capex-Led Borrowing Push?

The latest round of corporate lending is being attributed to a mix of new long-tenure borrowing and higher drawdowns against sanctioned limits. SBI’s management has pointed to stronger economic activity and higher working-capital usage, alongside a healthier pipeline of sanctioned but undrawn loans. 

LiveMint, published February 07, 2026, reported that SBI’s corporate loans now form a little over 33% of its total book, with demand supported by sectors such as oil and gas, infrastructure, metals, power and large non-bank financiers. It also reported a rise in SBI’s top-rated (AAA) share of the corporate book to 44%, up from 40% in the same period last year.

To see how this capex-led credit cycle is spreading across lenders, here is the latest bank-wise corporate loan growth snapshot.
 

This pattern suggests corporate credit is no longer limited to selective working-capital lines. It is also moving into term loans linked to capacity additions and projects, especially where execution timelines are clearer.

What Happened Earlier And How The Trend Built Up?

The visible acceleration is not just about one quarter’s demand. SBI, for instance, has been flagging a large corporate pipeline, which is now converting faster. The Economic Times (February 09, 2026) reported SBI’s corporate loan pipeline at about ₹8 lakh crore, with ₹3.5 lakh crore already disbursed and ₹4.5 lakh crore still available within sanctioned limits. 

LiveMint (February 07, 2026) put the pipeline at ₹7.9 trillion as of December 31, highlighting sanctioned but not yet utilised limits.

Axis Bank’s own disclosures also show the corporate leg doing the heavy lifting. In its results document for the quarter ended December 31, 2025 (PDF published by Axis Bank), the lender reported corporate loan book growth of 27% year-on-year. 

Meanwhile, ICICI Bank’s official performance review for the quarter ended December 31, 2025 stated that its domestic corporate portfolio grew 5.6% year-on-year and 6.5% sequentially.

Below is a quick view of the pipeline and guidance indicators that are shaping expectations for FY26.
 

For market context, Reuters, updated February 09, 2026 (3:53 AM UTC), reported SBI’s shares closed 7.5% higher at a record ₹1,146, after the bank raised its full-year loan growth forecast to 13%–15% (from 12%–14%) and posted 15.4% loan growth in the December quarter.

LoansJagat (Dec 05, 2025) had earlier linked SBI’s expected double-digit corporate credit growth to a sanctioned pipeline of ₹7 lakh crore, along with the 7.1% quarterly rise in corporate credit highlighted in that period.

Stakeholder Viewpoints From The Ground

SBI Chairman C.S. Setty has said the bank is seeing a rebound in corporate credit, with working-capital utilisation rising and more long-tenure loans being drawn, according to LiveMint (Feb 07, 2026). 

Reuters also cited brokerage commentary that SBI’s earnings momentum looks resilient, while warning that near-term stock triggers could depend on macro tailwinds (Feb 09, 2026). 

Conclusion

India’s corporate credit cycle is showing a clear pickup, with SBI’s 13.4% corporate book growth setting the tone and private banks also reporting faster expansion. The next few quarters will show how much of this is sustained capex drawdown versus short-term working-capital demand.