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 ...

Yes Bank on Wednesday said it has reported a credit growth of 11.3 per cent at Rs 2.01 lakh crore for the March 2023 quarter. The outstanding credit was Rs 1.81 lakh crore at the end of March 31, 2022, Yes Bank said in a regulatory filing. The lender registered a 12.9 per cent growth in deposits excluding Certificate of Deposits (CDs). Another private sector lender Karnataka Bank posted a 6.1 per cent increase in total loans to Rs 61,326 crore, while deposits grew by 8.69 per cent to Rs 87,362 crore. As a conscious business decision and a course correction measure, the bank has not emphasised on large corporate lending due to low yields and highly competitive rates in this segment, which would have adversely impacted the NIM, Karnataka Bank said in a statement. This is reflected in the fact that the share of large corporates to gross advances has dropped by about 3 per cent as on March 2023 (provisional) vis--vis December 2022, it said.

State-owned Bank of Maharashtra (BoM) on Wednesday said it has posted a credit growth of 29.59 per cent at Rs 1.75 lakh crore for the March quarter. The outstanding credit was Rs 1.35 lakh crore at the end of March 31, 2022, BoM said in a regulatory filing. The Pune-headquartered lender registered a 21.28 growth in total business to cross a milestone of Rs 4 lakh crore. At the end of March 2023, the total business (total advances and total deposits) increased to Rs 4.09 lakh crore as against Rs 3.37 lakh crore at the end of the previous fiscal. Total deposits of the bank increased by 15.7 per cent to Rs 2.34 lakh crore as against Rs 2.02 lakh crore at the end of the fourth quarter of the previous financial year. During the quarter, it said, the Current Account and Savings Account (CASA) stood at 53.39 per cent of the total deposits. With regard to Credit Deposit (CD) ratio, it said, the number has increased to 74.87 per cent at the end of March 31, 2023 as against 66.85 per cent i

Private sector lender HDFC Bank on Monday said it has recorded a 16.9 per cent increase in credit growth at Rs 16 lakh crore at the end of the March quarter. The bank had an outstanding credit at Rs 13.6 lakh crore at the end of March 31, 2022, HDFC Bank said in a regulatory filing. On a sequential basis, the bank posted a 6.2 per cent growth compared to the amount of Rs 15.06 lakh crore at the end of 2022 December quarter. As per the bank's internal business classification, domestic retail loans grew around 21 per cent compared to the end of March 2022 and about 5 per cent compared to the end of December 2022. Commercial and rural banking loans grew around 30 per cent over March 31, 2022 and about 9.5 per cent compared to December 31, 2022. Corporate and other wholesale loans rose around 12.5 per cent over March 31, 2022 and around 4.5 per cent over December 31, 2022, it said. The bank's deposits aggregated to approximately Rs 18.83 lakh crore as of March 31, 2023, a growth of a

The Non-performing assets (NPAs) from the small businesses segment have witnessed a decline in the September quarter of this fiscal despite high credit growth, a report said on Thursday. The micro, small and medium enterprises' (MSME) NPAs declined to 12.5 per cent as of September 2022, as against 13.9 per cent in September 2021, after the devastating second wave of the Covid-19 pandemic, the report by Transunion Cibil said. The overall disbursements, which excludes loan renewals, grew 24 per cent during the quarter, led by an over 54 per cent in the micro industries segment which have a credit exposure of up to Rs 1 crore, the credit information company said. The average loan size for the micro segment increased by 34 per cent, and to the small segment by 4 per cent, Cibil said, adding that the same was down 1 per cent in the case of businesses classified as medium primarily because of the emergency credit-linked guarantee scheme loans made during the pandemic. When it comes to ..

Economic expansion may be under pressure as the "full-blown impact" of the Reserve Bank of India's 250 basis point hike in borrowing cost since May gets transmitted to end-consumers, Crisil Ltd., the

Retail trade, NBFCs drive credit growth in services

Indian banks' credit growth doubled to 16.8% in the October-December quarter from a year earlier, data released by the Reserve Bank of India (RBI) on Monday showed

The foreign office advances were up by 21.47 per cent year on year (YoY) basis to Rs 4.86 trillion in December 2022 from Rs 4.0 trillion in December 2021

A healthy rise in NII and a sharp drop in credit costs boost bottom-line

The year-on-year (YoY) growth in non-food bank credit sped up to 15.3 per cent in December 2022, with the credit growth broad-based across sectors, the Survey said

Credit to NBFCs and trade (wholesale and retail) showed maximum traction, RBI data showed

Credit growth is likely to be brisk for MSMEs in FY2023-24 provided inflation remains benign and cost of credit is low, said the Economic Survey 2022-23 presented in Parliament on Tuesday. The Micro, Small and Medium Enterprises sector witnessed a credit growth of about 31 per cent in January-November 2022. "If inflation declines in FY24 and if real cost of credit does not rise then credit growth is likely to be brisk in FY24," the Survey said. Talking about the banking sector in India, the Survey said it has also responded in equal measure to the demand for credit as the year on year growth in credit since the January-March quarter of 2022 has moved into double digits and is rising across most sectors. The finances of public sector banks (PSBs) have seen a significant turnaround with profit being booked at regular intervals and their non-performing assets being fast-tracked for quicker resolution/liquidation by the Insolvency and Bankruptcy Board of India (IBBI), it said. At the

For most banks, the liability part of the balance sheet has been on autopilot, and the strategies have evolved around credit growth and recovery of bad loans. Now the story has to change

Banks extended loans of almost Rs 1.5 trillion during the fortnight ended December 30

The sector is expected to outperform

Credit growth in the banking system is touching decadal highs but deposit growth has lagged

Sequentially, few banks have reported higher deposit growth than credit growth

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

Banks' net interest margin should expand in the near term despite credit costs expected to normalise