Bank Credit Growth

Bank credit offtake is expected to pick up following normalisation of economic activities aided by the government thrust on public expenditure in current fiscal year, a report said. According to the Care Edge report, the gross non-performing assets (GNPA) ratio hit a six-year low of 5.9 per cent in FY22 but remained above the pre-asset quality review of 2015-16. However, it said, India's NPA ratio is one of the highest among the comparable countries despite gradual decline. Non performing loans eased in advanced economies due to continued deleveraging, and institutional and government intervention, it said. As the Indian economy has navigated the pandemic-induced shocks, it said, the bank credit growth by scheduled commercial banks (SCBs) improved post-August 2021 to reach 13.1 per cent in early June 2022, a rate last recorded in March 2019. Apart from retail, the major driver of this growth has been the wholesale credit, which reported double-digit growth after witnessing a ...

While credit growth has moderated from 16.5% in mid-January, it is significantly higher than the year-ago period, when it was hovering at around 9 per cent

About a month ago (January 13 fortnight), credit growth stood at 16.5 per cent YoY

It had moderated to 14.9 per cent YoY in the fortnight ended December 30 due to base effect, but subsequently picked up as the base effect eased out

Deposit growth has gathered pace to 10.6%

Revisions mainly introduced for high-value deposits of Rs 2 cr and above; Continuous rate hikes over time raise concern about sustainability of healthy net interest margins

Ind-Ra said the credit expansion of (Rs 6.1 trillion) does not seem like a stretch goal, given the level of economic activity in the system

State-owned Bank of Maharashtra (BoM) on Tuesday said it has posted a credit growth of 21.81 per cent to Rs 1.57 lakh crore for the third quarter ended December 2022. The outstanding credit was Rs 1.29 lakh crore at the end of December 31, 2021, BoM said in a regulatory filing. The bank's deposits aggregated to about Rs 2.08 lakh crore as of December 31, 2022, registering a growth of 11.69 per cent over Rs 1.86 lakh crore at the end of December 31, 2021, it said. During the quarter, it said, the Current Account Savings Account (CASA) stood at 52.50 per cent of the total deposits. The Pune-headquartered lender recorded a total business growth of 15.83 per cent to Rs 3.65 lakh crore at the end of third quarter, as compared to Rs 3.15 lakh crore at the end of the same quarter in the previous fiscal.

Credit growth in the system has touched a decade high, a level seen last in 2011

Topline growth should outweigh any pressure on margins

However, growth in deposits and advances took a knock as liabilities shrank on the back of high base in 2020-21, shows RBI Report on Trend and Progress of Banking in India

The relentless fight against Cryptocurrencies, CBDC taking baby steps, and bank Credit growth at a decadal high

Have better underwriting, risk magt to manage high credit growth

Private bankers said there were signs that the credit demand was durable and as such the landscape for banks' management of assets and liabilities would remain challenging for quite some time

Country's largest lender State Bank of India (SBI) raised deposit rates by 15-100bps, the maximum increase being for bulk deposits

Lower GDP growth, RBI rate hikes, reversal of base effect to blunt credit growth, analysts say

Deposit growth rises 9.6%, analysts cite FPI flows, govt spending

The bank said for select products and vouchers, redemption of reward points will be capped at 70 per cent of the total value, but this is not applicable for Infina and Diners Black cards

Rating agency warns capital base of PSBs may come under greater strain

The latest round of fundraising by banks comes at a time when credit growth has shown sustained momentum even as growth in deposits continues to lag