New Delhi, Sept. 30 -- India's private sector investment cycle has yet to translate into a strong credit growth cycle, despite fresh project loan sanctions rising 18 per cent year-on-year in FY26, with infrastructure, especially power, continuing to attract a major share of bank funding, according to a report by Kotak Institutional Equities.

The Reserve Bank of India's (RBI) latest bulletin projected capital expenditure by India's private corporate sector to increase to Rs 3.2 trillion in FY27 from Rs 2.6 trillion in the previous fiscal.

According to RBI data cited by Kotak, fresh project loan sanctions to the private sector by banks and financial institutions were around 3 per cent of total loans in FY26, unchanged from FY25. Pending d...