It has been expected that Mid-cap lenders will post a strong profit growth in the first quarter of the current fiscal year. Accelerated credit growth is the main reason for such anticipation. Due to heavy loan disbursement in the telecoms sector, a huge credit growth has been posted. It was supported by the robust rise in deposits as well.

Out of eleven mid-cap banks, eight banks are anticipated to register a very good show in the reviewed quarter. They are expected to post a profit growth which may range from 6.7% to 44%. This has been predicted by a renowned firm which was based on a poll of brokerages.

According to a market analyst, there had been loan disbursements of up to 1 trillion rupees during the auction of 3G and wireless broadband. Mid-cap banks had provided a major portion of this amount and that is heading towards a huge and strong credit growth in the current and upcoming quarters.

Another firm has added that infrastructure, power and telecommunication are the major propeller of the credit growth in the June quarter of the fiscal.