In 2012-13, banks and financial institutions gave loan to Rs 2 lakh crore worth of projects compared to Rs 1.9 lakh crore worth of projects in 2011-12.

This is sharply lower than loan given by these organisations to projects worth Rs 3.8 lakh crore in 2010-11, Reserve Bank of India (RBI) said in its macroeconomic and monetary developments report.

According to the report, corporate leverage (debt to equity) ratio rose in 2011-12 to 72.3 from 69 in 2010-11 and 69.7 in 2009-10.

Net profits went down in Q4 of 2012-13, which grew by 3.1 per cent compared to 52 per cent in the same period last year owing to higher employee expenses and lower support from other income, RBI said.

Owing to the overall negative business sentiment arising from slack cyclical conditions and structural factors, corporate investment intentions are also slow, RBI said.

The central bank however said government actions have started addressing the situation. Government initiatives have started addressing infrastructure bottlenecks, although the progress is slow and half of 566 large central sector projects are delayed and have cost overruns of 18 per cent, RBI said.

It also said infrastructure bottlenecks have been a major factor in India’s low growth.