Page 2 - Bank Credit

Bank credit outstanding to real estate hits record Rs 28 trn in July: RBI

Bank credit to housing as well as commercial real estate witnessed nearly 38 per cent annual growth in July, taking the loan outstanding to the realty sector to a record Rs 28 lakh crore, as per the latest RBI data. It is evident from the Reserve Bank's loan outstanding data as well as property consultants data on housing sales and new launches across major cities that activities in the real estate sector are moving at a fast pace. The credit outstanding in housing (including priority sector housing) rose 37.4 per cent annually in July crossing Rs 24.28 lakh crore, showed the RBI's data on 'Sectoral Deployment of Bank Credit July 2023'. The credit outstanding to the commercial real estate increased by 38.1 per cent to Rs 4.07 lakh crore. Commenting on the RBI data, Anarock Chairman Anuj Puri said the impressive loan growth in the real estate sector is a function of a large-scale demand revival across the board. "The commercial office segment was reeling under the pandemic's press

Centre considering inclusion of EVs in priority sector lending category

The government is considering a proposal to include electric vehicles (EVs) in priority sector lending category, a senior official said on Saturday. "We have received a representation to include EV in priority sector. We will look at reworking the priority sector lending requirements for banks," the official said adding the issue has to be discussed with the Reserve Bank of India. As per RBI guidelines, it is mandatory for banks to extend 40 per cent of their adjusted net bank credit to priority sector. Currently, seven sectors -- agriculture, Micro, Small and Medium Enterprises (MSME), export credit, education, housing, social infrastructure, and renewable energy -- are considered for priority sector lending (PSL). Inclusion of EVs in PSL has the potential to increase investor confidence by providing a market signal of ongoing government commitment to the sector. It can also ensure a swift and equitable transition by providing a mandate for financial institutions to direct credit

Deposit growth hits 6-yr high on Rs 2000 note withdrawal, higher FD rates

In absolute terms, bank deposits have increased by Rs 22 trillion in the trailing twelve-month period

Credit grows by 16.22% YoY and bank deposits 12.96%, shows RBI data

Besides robust demand across segments, rise tied to quarter-end business also pushed the loan volumes in fortnight, bankers said

Deposits shrink Rs 59,623 cr, credit down Rs 6k cr in May 19 fortnight

CARE Ratings said the credit-to-deposit ratio has been generally trending upward since the latter part of FY22

Growth of bank credit to industry decelerates in April to 7%: RBI

Growth of bank credit to industry decelerated to 7 per cent in April 2023 as compared to the corresponding month in the previous year, according to Reserve Bank data. The Sectoral Deployment of Bank Credit April 2023 of the RBI also said personal loans growth registered a growth of 19.4 per cent (y-o-y) in April 2023 as against 14.4 per cent a year ago, mainly driven by housing and vehicle loans. Loan to agriculture and allied activities improved to 16.7 per cent (y-o-y) in April 2023 from 10.6 per cent a year ago. "Credit to industry registered a growth of 7 per cent (y-o-y) in April 2023 as compared with 8 per cent in April 2022," it said. Size-wise, credit to large industry rose by 5.3 per cent as compared with 1.3 per cent a year ago. Credit growth of medium industries was 19.1 per cent as against 53.7 per cent last year. Credit to micro and small industries registered a growth of 9.7 per cent in April 2023 (29.8 per cent a year ago). RBI further said among major industries,

Bank credit grows at a steady 15.5% YoY in early May, shows RBI data

Deposit mobilisation improves with 10.4% YoY growth

Banks report tougher credit standards in wake of failures: US Fed report

A Federal Reserve report on Monday showed that banks raised their lending standards for business and consumer loans in the aftermath of three large bank failures, a trend that could slow the economy in coming months. The report, known as the senior loan officers survey, asked banks if they have tightened their lending standards by taking steps such as demanding higher credit scores, charging higher interest rates, or other moves that altogether would make it harder for businesses and consumers to obtain loans. About 46 per cent of all banks said they had raised standards for business loans known as commercial and industrial loans, up from just under 45 per cent in the previous quarter. That increase was not as dramatic as in previous quarters, but banks were tightening credit before the bank failures. A year ago, slightly more banks were easing credit standards than increasing them. The survey respondents were 65 US banks and US branches of 19 foreign banks. The results were gather

Bank credit grows 15.7%; deposits increase 10.2%, shows RBI data

The growth in deposits was 10.2 per cent YoY basis to Rs 184.5 trillion at end of April 7

RBI proposes expanding UPI digital payments system to allow credit

UPI is an instant real-time payments system that allows users to transfer money across multiple banks without disclosing bank account details

FY23 bank credit growth highest since FY12, up 15%, shows RBI data

Banks were engaged in intense competition by offering higher interest rates on term money to mop up funds

Surge in bank credit offtake leads to three-fold jump in CD issuance

Meanwhile, issuance of commercial papers---securities sold by companies to raise funds--dropped sharply to Rs 12.5 trn in FY23 (up to Feb 28) from Rs 19 trn over the same period last year

Bank credit grows 15.5% YoY in Feb 24 fortnight to Rs 134.5 trillion

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

Increasing interest costs

Corporate results indicate improving demand

Bank credit grows at 16.1% to Rs 134.17 trillion in Feb 10 fortnight

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

Bank credit grows at 16.3% to Rs 133.41 trillion, shows RBI data

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

SBI likely to sell Rs 10,000 crore of AT-1 bonds around February 20

The bonds, which are likely to receive a rating of AA+, may go up for bidding on February 20 with issuance scheduled for the next day

Bank credit growth rises to 16.5% to Rs 132.81 trillion in Jan 13 fortnight

Deposit growth has gathered pace to 10.6%

After hitting road bump in Dec, bank credit growth to regain pace in Q4

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

Indian bank credit growth to be stronger in Q4FY23, says Emkay Global

The Indian banking sector performance was led by stronger than-expected credit growth after years of a lackluster performance, sharp margin uptick benefiting from the rate cycle