New Delhi, Oct. 25 -- Despite rising investments across emerging sectors like AI and space technology, bank and non-banking financial company (NBFC) lending remains limited, as per a report by Union Bank of India.

According to the report, emerging sectors such as AI, semiconductors, defence and green hydrogen are attracting massive investments. "AI, semiconductors and defence each carry over Rs 5 lakh crore of announced public and private investment," it said.

However, banks may not be the primary financiers of all these projects, as financing patterns vary significantly across sectors, with debt financing dominating manufacturing and power projects "while AI and space stay equity-funded."

Noting that "Technology obsolescence is the to...