Credit Growth

Indian cos raise $6 bn from private credit in first-half 2024: EY report

Real estate, healthcare firms push private credit deals to record high

Growth and credit cost concerns mar microfinance sector prospects

The rapid growth in AUM in the last two years may have led to potential over-leverage by borrowers

HDFC Bank increases fixed deposit interest rates by up to 20 basis points

It will offer 7.35% and 7.40% on fixed deposits below Rs 3 crore for 35 months and 55 months tenors

Banks' deposit growth dips to 10.6%; credit growth at 13.9% as on June 28

Credit up by 13.9% Y-o-Y as on Jun 28

Banks Q1 loan growth remain strong, share of low cost deposits falls

The credit-to-deposit ratio of the Mumbai-based private sector lender Yes Bank rose to 86.8 per cent at the end of June from 85.5 per cent at the end of March

UCB credit profile improves in H2FY24, says financial stability report

UCB executives said besides regulatory push for effective asset quality management, the upturn in credit growth and improvement in margins have helped enhance provision cover

Commercial banks credit growth to moderate to 12-14% in FY25: Moody's

Resource mobilisation challenge, regulatory nudge to weigh on growth

Banks need to revise plans to deal with credit and deposit growth gap: Das

Banks need to re-strategise their business to deal with the persistent gap between credit and deposit growth, RBI Governor Shaktikanta Das said on Friday. He also said that further actions on moderating growth in unsecured loans could be taken, if required. In November last year, RBI had flagged certain concerns on excessive growth in the unsecured retail loans and over-reliance of NBFCs on bank funding. "Recent data suggests that there is some moderation in these loans and advances. We are closely monitoring the incoming data to ascertain if further measures are necessary," he said while announcing the bi-monthly policy. "The message is to convey that RBI is watchful of every aspect of financial sector especially in the banking sector. We are agile, we are watchful and if and when some further measures are required, we will come," he said during an interaction with reporters. The Reserve Bank increased risk weights on unsecured consumer credit and bank credit to NBFCs on Novembe

India Inc to tap private credit to finance new projects, says PwC

Tax uncertainty is a big concern for PEs

ICRA revises FY25 outlook for banking sector to 'stable' from 'positive'

Rating agency expects credit growth and profitability to moderate in the sector

Private credit faces liquidity risks if stress rises, says IMF report

Private credit also remains largely untested in an economic slump, according to the analysis. It caters to mostly small and mid-size borrowers with higher leverage, implying more risk

PNB reports 11.5% loan growth in quarter ending March, BoB's up by 12.4%

State-owned Punjab National Bank (PNB) on Friday said it has posted a credit growth of 11.5 per cent at Rs 9.85 lakh crore for the March quarter. Total advances were Rs 8.84 lakh crore at the end of March 31, 2023, PNB said in a regulatory filing. The lender reported a 7 per cent increase in total deposits to Rs 13.70 lakh crore as against Rs 12.81 lakh crore at the end of the fourth quarter of the previous financial year. Total business of the bank rose 8.8 per cent to Rs 23.56 lakh crore as compared to Rs 21.65 lakh crore at the end of March 31, 2023. The Credit Deposit (CD) ratio increased to 72 per cent at the end of March 31, 2024 as against 69.1 per cent in the year-ago period. Another public sector lender Bank of India reported a credit growth of 13.56 per cent at Rs 5.86 lakh crore for the March quarter. The outstanding credit was Rs 5.15 lakh crore at the end of March 31, 2023, Bank of India said in a separate regulatory filing. The total deposit of the bank rose 10.20

Bank of Maharashtra reports 16% credit growth in Q4 at Rs 2.03 trn

State-owned Bank of Maharashtra (BoM) on Friday said it has posted a credit growth of 16.31 per cent at Rs 2.03 lakh crore for the March quarter. The outstanding credit was Rs 1.75 lakh crore at the end of March 31, 2023, BoM said in a regulatory filing. The Pune-headquartered lender reported 15.63 per cent increase in total deposits to Rs 2.70 lakh crore as against Rs 2.34 lakh crore at the end of the fourth quarter of the previous financial year. During the quarter, it said, Current Account and Savings Account (CASA) declined to 52.73 per cent of the total deposits as against 53.39 per cent. The Credit Deposit (CD) ratio increased to 75.23 per cent at the end of March 31, 2024 as against 74.87 per cent in the year-ago period.

Retail credit growth moderates to 18.1% in February, shows RBI data

The loan growth in agriculture and allied activities remained robust at 20.1 per cent YoY in February 2024, up from 15 per cent a year ago

Bank credit to industry grows 8.6% in Feb on increased borrowing: RBI data

Bank credit to industry grew 8.6 per cent year-on-year in February mainly due to accelerated pace of borrowing by sectors, like infrastructure and textiles, Reserve Bank of India (RBI) data released on Thursday revealed. Credit growth to agriculture and allied activities remained robust at 20.1 per cent in February compared to 15 per cent in the year-ago month, said the RBI's data on sectoral deployment of bank credit. Data on sectoral deployment of bank credit for February has been collected from 41 select commercial banks, accounting for about 95 per cent of the total non-food credit deployed by all lenders, the data showed. "Credit to industry grew by 8.6 per cent (year-on-year) in February 2024 as compared with 6.8 per cent in February 2023," the RBI said. Among major industries, the annual growth in credit to "food processing", "infrastructure", and "textiles" accelerated in February as compared with the corresponding month of the previous year, while that to "basic metal and

Uttar Pradesh sees rise in education loans, outstanding amount declines

In UP, the number of digital transactions jumped nearly threefold to 11.74 billion in FY23 from 4.26 billion in FY22

RBI directs credit card issuers to give users choice of other networks

RBI on Wednesday said issuers of credit cards shall not enter into any arrangement or agreement with card networks that restrain customers from availing the services of other networks

High gap between credit, deposit growth to impact loan sales, NIMs: Report

The continuing gap between credit and deposit growth rates is likely to impact both future loan sales as well as net interest margins of banks, says a report. Credit off-take grew at 20.3 per cent in this fiscal so far while deposits grew at a slower pace of 13.6 per cent YTD, according to the report by Care Ratings. The gap between credit off-take and deposit growth rates has resulted in a lower liquidity coverage ratio (LCR) while private banks led by HDFC Bank are reporting lower LCR than their public sector peers. According to a Care Ratings analysis, HDFC Bank has seen the highest fall from 120 per cent in the July-September quarter of FY24 to around 102 per cent in the third quarter, followed by ICICI Bank and Axis Bank at 118 per cent each for both quarters. On the other hand, the largest lender SBI has around 140 per cent in the second quarter and around 137 per cent in the third quarter of the current fiscal, while PNB and BoB has over 140 per cent each for both quarters.

A third of withdrawn insolvency processes fully settled, says IBBI

IBBI said that the credible threat of the code that a company may change hands has changed the behaviour of debtors

Credit growth in India expected to moderate to 14% in FY25: S&P Global

Credit growth in India is expected to moderate to 14 per cent in FY25 from the existing 16 per cent as deposit growth is unable to keep pace with loans, a global rating agency said in a report. "Deposit tightness will remain a system overhang. Our base case is for loan growth to slightly moderate, leading to manageable competition for deposits. Indian banks will have to strike a fine balance between maintaining strong loan growth and paying more for deposits to fund that growth," S&P Global Ratings said. If the clash for deposits gets fiercer, Indian banks will take a hit, either with slimmer margins or slower growth, it said. "Credit demand is strong. The economic backdrop is highly conducive to growth. Asset quality is improving, buoyed by a confluence of supportive structural and cyclical factors. All that India's banks are missing is a boom in deposits," it said. As per the report, system-level credit growth to moderate to 14 per cent in 2024-25 from about 16 per cent ...