Fitch Ratings on Monday said India's bank credit will see strong growth in current financial year despite effects of higher interest rates. It said the strong loan growth should benefit net revenue, particularly as it will be coupled with wider net interest margins. "We see bank credit expanding by around 13 per cent in FY23, up from 11.5 per cent in FY22. The acceleration will be driven by the normalisation of economic activity after the COVID-19 pandemic, and high nominal GDP growth, which we expect to boost demand for retail and working-capital loans," Fitch said in a statement. Fitch forecasts India's real GDP growth at 7 per cent in 2022-23. It said Indian banks generally remain open to additional capital-raising to fund growth, despite the rise in rates. "Private banks are generally better than state banks at capital planning, although moves to raise fresh equity are likely to be opportunistic and incremental," Fitch added. The rating agency expects greater competition for .
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A candidate can be appointed for 5 years initially, extendable for another five years; this is also applicable for executive directors who are also wholetime directors
Bank deposits rose Rs 1.69 trillion to Rs 173.70 trillion in the two weeks to Nov 4
State Bank of India has raised the marginal cost of funds-based lending rate (MCLR) by 15 basis points across tenors, making most consumer loans costlier for borrowers. The revised rates come into effect from November 15, 2022. The benchmark one-year MCLR, which is used as base for fixing most of home, auto and personal loans, has been raised by 10 basis points (bps) to 8.05 per cent, as against 7.95 per cent earlier. Likewise, the two-year and three-year MCLRs have been raised by 10 basis points each to 8.25 per cent and 8.35 per cent, respectively, SBI said in a notification on its website. Among others, one-month and three-month MCLRs have been increased by 15 basis points each to 7.75 per cent. The six-month MCLR is up by 15 basis points at 8.05 per cent while the overnight rate is higher by 10 basis points at 7.60 per cent.
Strong loan growth, rising lending rates give the boost
Bank deposits fell Rs 601.16 billion to Rs 172.04 trillion rupees in the two weeks to Oct 21
Moneyboxx caters to the credit needs of micro entrepreneurs in Tier-3 and below regions of the country
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According to RBI data, bank credit grew at 16.2% YoY as on September 9, while deposits were up by 9.5%
The share of low-cost money, CASA , in deposits was 31.3% as of September 30, 2022
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If MSMEs are unable to pass on input costs to their customers, then units, especially weaker ones, are likely to face difficulties, said a senior executive of a private bank
People who fail to repay their loans are not criminals and they can't be harassed