Page 2 - Credit Growth

A third of withdrawn insolvency processes fully settled, says IBBI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 ...

Audit of Rs 22.7K cr microloans due to large claim amount: Bandhan CEO

The maximum eligible amount a bank can claim under the CGFMU insurance is 15 per cent of the total insured amount

Credit growth of banks could moderate in FY25 on tighter liquidity: S&P

S&P Global Ratings on Monday said strong credit growth of Indian banks could moderate to 12-14 per cent in the next fiscal if deposit growth remains tepid. "Deposit growth continues to lag credit for the Indian banks we rate, leading to tight liquidity conditions," S&P Global Ratings credit analyst Nikita Anand said. Banks may be compelled to look for wholesale funding, S&P said, adding that higher costs of such funding could further strain margins and hurt profitability. Rising cost of funds and potential rate cuts in fiscal 2025 will squeeze net interest margins, it added. "Liquidity is tightening for Indian banks. The sector's strong credit growth could moderate to 12-14 per cent in fiscal 2025 if deposit growth remains tepid, compounded by higher deposit costs and competition for funds," S&P said in a report titled 'Tight liquidity shackles Indian banks' robust credit growth'. S&P expects the share of unsecured personal loans in the banks' total loan book to ...

Priority sector credit target to be Rs 3.97 trn for K'taka in FY25: Nabard

NABARD has estimated a credit potential of Rs 3.97 lakh crore for priority sector lending in Karnataka during 2024-25, its Chief General Manager (CGM) T Ramesh said here on Tuesday. Speaking during the State Credit Seminar for Karnataka at their Regional Office, the NABARD CGM said the estimated credit potential is 10.67 per cent higher than the previous years' credit projection. Of the total, the share of agriculture sector including agri-infrastructure and ancillary activities is Rs.1.85 lakh crore (46 per cent), MSME sector is Rs.1.58 lakh crore (40 per cent) and other priority sector activities is Rs.0.54 lakh crore (14 per cent), a statement issued by NABARD quoted him as saying. In the wake of severe drought situation, NABARD has been complementing the efforts of State government by extending financial support to the tune of Rs 990 crore for 119 irrigation projects and Rs 611 crore for drinking water projects under Rural Infrastructure Development Fund and has sanctioned Rs 29

Margin pressure

Investment revival will boost credit growth

Tight liquidity spurs high demand at RBI's variable rate repo auction

Banks bid for Rs 3.08 trillion against notified amount of Rs 2.5 trillion

Lending rates almost peaked, reduction to follow over next 1 year: Bhutada

Bhatuda says that as far as passing of the reduction of rates to customers is concerned, the same will follow the interest rate movement across the industry

Rising interest rates threaten India's credit growth, pressure margins

While Samsung Electronics Co. disappointed last week, the country's chip output and shipments grew the most in years in November, reviving optimism about the outlook

Net advances of IndusInd Bank rise 20% to Rs 3.26 trillion in Q3 FY24

IndusInd Bank's growth in loans was 4 per cent in Q3 FY24 compared to the quarter ended in September 2023

Goldman Sachs ramps up credit business in India, targets rich diaspora

Goldman joins Wall Street lenders and private equity giants chasing opportunities in an economy that is forecast to grow 7% in the year ending March

Credit-deposit ratios of Indian banks may weaken, dent margins in 2024: S&P

Asset quality to stay on improvement trajectory

Transmission remains incomplete amid calibrated liquidity management: RBI

However, the increase in term deposit rates in the current tightening cycle has exceeded that in lending rates, the report said

'Every adult should be able to avail of credit through DPI by 2030'

Aadhaar has enabled every Indian to have a digital identity, DPI would enable every Indian to get on board with digital transactions, said Rajesh Bansal, CEO of RBI

Credit growth to industry decelerated, improved for agriculture in Sep: RBI

Personal loan growth too decelerated to 18.2 per cent year-on-year in September 2023 (19.4 per cent a year ago), due to moderation in credit growth to housing, the central bank said

Banks likely to report healthy profits in Q2 on high credit growth

Sequentially rising fund cost put pressure on margins

Banks to report healthy bottom line on high credit growth, low credit costs

NII, a key earning source for lenders, may show higher growth in private banks (24.4 per cent Y-o-Y) compared to public sector banks (12.1 per cent Y-o-Y) in Q2FY24

Bank credit growth to dip to 13-13.5% this year from 15.9% in FY23: CRISIL

Growth in wholesale credit, which makes up to 60% of overall credit, is likely to slow to 11-11.5% this year from a decadal high of 15% last year

Credit growth to moderate to 13.2 pc in FY24, NPAs to improve further: Icra

Credit growth in the banking system's will moderate to 12.1-13.2 per cent in the current fiscal from 15.4 per cent in the year-ago period, a domestic rating agency said on Thursday. Asset quality improvement will continue, while the Gross Non-Performing Assets (GNPA) ratio is expected to come down to 2.8-3 per cent by March 2024, as against 3.7 per cent at the end of the June quarter, domestic rating agency Icra said. Amid the high growth in unsecured credit, the rating agency said there is nothing much to be concerned about on the front, and the vulnerable retail book remains low and manageable. Icra Co-Group Head Anil Gupta termed the credit growth as "robust", despite the slight moderation from the percentage growth perspective, and added that the agency expects the quantum of credit to also be lower at Rs 16.5-18 lakh crore as against the Rs 18.2 lakh crore in the year-ago period. Banks will chase more deposits this year, and the overall deposit growth for FY24 is expected to c

As credit growth outpaces deposits, banks may increase interest on FD

Bank deposits have gone up by 6.6 per cent to reach Rs 149.2 trillion during the April-August 2023 period, whereas the credit growth for the same period was 9.1 per cent