Credit Demand

Banks to rely on certificates of deposit to fund credit demand: Officials

Certificates of deposit (CDs) are debt instruments with maturities of less than one year issued by banks

Conundrum of the credit-deposit ratio: Understanding RBI's concerns

The RBI is also concerned that the banks have turned to bulk deposits and certificates of deposit to mobilise funds, as retail deposits (both savings and term deposits) have become stagnant

Credit-deposit ratios of banks spark debate: Is there a cause for worry?

Though increased lending generally leads to more deposits through the credit multiplier effect, reduced liquidity has led to shrinking deposit pools

Research reports on China's bad lending data disappear on social media

At least seven research reports from mainland brokerages and securities firms that had been posted to WeChat by analysts were unavailable for viewing

Indian firms collect Rs 9.41 trn from private placement of corporate bonds

Indian companies garnered Rs 9.41 lakh crore through the issuance of bonds on a private placement basis in 2023-24, a surge of 10 per cent from the preceding fiscal amid surge in credit demand. The 2024-25 fiscal is expected to be very robust as companies will continue to raise capital for capex post-election results. "In an unprecedented era of economic development aided by pro-business reforms and macroeconomic stability, India is set to become the third largest economy globally by 2027 and will continue to see strong flows. "In this backdrop, we expect FY25 to also be a very strong year from a primary capital perspective as companies will continue to look to raise capital for capex post-election results," Neha Agarwal, Managing Director & Head of Equity Capital Markets at JM Financial Ltd, said. According to data compiled by Prime Database, the amount raised through debt private placement in 2023-24 stood at Rs 9.41 lakh crore, up 10 per cent from Rs 8.52 lakh crore in 2022-23.

Credit platform Yubi announces partnership with Axis Bank, Muthoot Microfin

Alliance will serve diverse sectors, with initial focus on microfinance institutions

Fund mobilisation through private bond placements hit all-time high in 2023

The highest mobilisation in 2023 came from All-India Financial Institutions and banks, accounting for Rs 4.71 trillion, representing a 29 per cent increase from the previous year's Rs 3.66 trillion

Higher credit demand likely to lead to further upsides for banks

The RBI's increased risk weightage will hit growth in personal loans, credit cards and NBFCs

Banks raise Certificate of deposit by 20 bps in Oct to cater credit demand

CDs, which are short-term debt instruments employed by banks to amass funds, have seen an uptick in rates

Credit demand to remain robust, to clock about 14% growth: SBI chairman

YONO 2.0 rollout by FY24-end; app fetches Rs 100 crore in fee income every qtr

Reserve Bank of India may need to pump in funds on liquidity crunch

GST payments and quarter-end credit demand may lead to such a situation

India poised for world-beating growth, says CEA V Anantha Nageswaran

Data next week is likely to show the economy expanded 7% in the year that ended March

Bank borrowings jump 64% in FY23, cross Rs 5 trillion mark for first time

Reliance on short-term funding increases as bank borrowings average Rs 4.2 trn

Industry's share of non-food bank credit hits record low of 26.6%

Economists at India Ratings blamed the recent surge in interest rates

Banks may need to lift deposit rates as credit demand surges: RBI report

The Reserve Bank of India has raised rates aggressively this year to tame inflation. While banks have swiftly transmitted the hikes to their lending rates, deposit rates have been laggards for most

Top Indian banks battle for no 1 bond spot as credit demand surges

Indian businesses are hungry for credit, despite rising interest rates, as they borrow to cover higher operational costs and for more investments

Signs of global slowdown: Export credit demand shrinks 25% YoY in October

The data released by the Reserve Bank of India (RBI) showed a fall in export credit even though the bank credit saw a robust growth of 18 per cent

Why is demand for private credit on the rise?

The festival month saw 18.3% growth in non-food credit offtake. Retail loans -- driven by robust housing and vehicle loans demand -- saw a 20% jump. What explains this surge in personal loans?

Uttar Pradesh govt asks commercial banks to step up credit flow

The UP government has said unless the credit flow is equitable across the different regions, the goal of a $1-trillion economy would remain elusive

Credit risk not being fairly priced in by banks, says SBI report

Credit demand at decadal highs and liquidity remains significantly downsized, says research