Page 2 - Credit Growth

Credit growth inches up to 11.4% in October 3 fortnight: RBI data

Data from the RBI show outstanding credit in the system stood at Rs 192.66 trillion, while deposits stood at Rs 240.98 trillion.

Relaxation of risk weights unlikely to spur growth in absence of demand

Banks in India are currently sitting on excess capital, with CET1 ratios around 14.7 per cent, well above the regulatory requirement of 8-9 per cent

'Tax structure exporting India's rupee credit market to foreign investors'

Real estate continues to be an attractive sector for investment

RBI unveils 22 measures to boost credit flow, ease home loan burden

Indian banks are now also allowed to fund acquisitions of non-financial entities and to finance land acquisition by special purpose vehicles, quelling a long standing demand of lenders

Retail credit growth moderates in August ahead of festival demand

RBI data shows retail credit growth slowed to 11.8% in August from 13.9% a year earlier, with housing, vehicles and credit card loans recording sharper moderation

Lenders tilt towards collateral-backed lending: TransUnion report

Shift towards collateral-backed lending signals risk-conscious credit growth

Crisil pegs FY26 bank credit growth at 12%, flags MSME loan stress

Domestic credit rating agency Crisil on Monday said banks' credit growth will accelerate in the second half of the fiscal year and inch up to 12 per cent in FY26. Retail credit will drive growth in loan books for banks in FY26, and corporate loans growth will be slower in the fiscal year, the agency said. The agency flagged some concerns for the industry, including a decline in households' contribution to deposit accretion, which can lead to issues over deposit stability, and lending to small businesses, which can impact asset quality. "The Q1 credit growth was slower at 9.5 per cent and while it has inched up to 10 per cent, it is still subdued. However, we expect the second half to lead to faster loan growth, which should take FY26 loan growth to 11-12 per cent," Crisil Chief Rating Officer Krishnan Sitaraman told reporters. He said government and regulatory measures, coupled with a likely reversal of an earlier trend of corporate borrowers going to alternatives like bond markets

Banks betting on festive season, GST cut to boost credit growth in H2FY26

Banks are launching attractive loan offers, with credit growth expected to rise during the festive season and after GST cuts. Retail lending is set for significant growth in H2 FY25

Industry credit growth slows to 6% in July; bankers expect momentum ahead

During this period, credit to micro industries grew 21 per cent, while credit to medium industries rose 14.7 per cent. In contrast, credit to large industries increased by only 0.9 per cent

India Inc meeting capex need with own cash, says SBI chief C S Setty

SBI Chairman CS Setty said India Inc is funding capex through cash reserves of Rs 13.5 trillion, leading to weak loan demand; IBA to seek RBI nod for bank financing of M&A deals

Credit growth rose to 10% in July 25 fortnight, deposit growth at 10.2%

Retail credit moderation and rising bond yields impact bank lending growth, as credit rises 10 per cent and deposits grow 10.2 per cent in the fortnight ended 25 July

Credit growth inches up to 9.8% as deposit growth continues to outpace

At 10.1%, deposit growth continues to outpace credit, although the gap has narrowed to 300 basis points

BofA positive on Vedanta on improving credit profile, attractive valuation

Bank of America (BofA) Global Research has maintained a positive recommendation on securities issued by Vedanta Resources Ltd and its subsidiary, citing reduced holding company liquidity risk, cheaper debt, and lower reliance on dividends in the future. The firm's report follows allegations by a US-based short seller Viceroy Research of Vedanta Resources' structural subordination, reliance on brand fees/dividends to service debt and frequent changes in senior management. Vedanta Group has strongly rejected the allegations. "Even so, the holding company's liquidity risk has been reduced with a reduction in its debt to USD 5.3 billion by end of financial year (FY) 2025, driven by dividends and brand fees from its majority-owned Vedanta Ltd, and a 12 per cent stake sale in the latter (ownership reduced to 56.4 per cent as of FY25), and lower repayments (USD 450-650 million per annum) over the next three years with recent refinancing," the firm said. It also noted the moderation in ...

Banks' loan offtake gains pace at end of first quarter, shows data

Bank credit growth slowed further to 9.5% YoY in the fortnight ending June 27, with deposits growing at 10.1%, outpacing credit growth, data showed.

Need to shift from fortnightly to real-time credit reporting: RBI DG

RBI's Rajeshwar Rao calls for real-time credit reporting, use of alternate data, AI and tokenisation to improve access and efficiency in India's expanding credit ecosystem

FM Nirmala Sitharaman nudges public sector banks to push credit growth

After slipping to 12% in FY25, loans growth has fallen below 10%

FM asks PSBs to step up deposit mobilisation, deepen corporate lending

Sitharaman reviews PSB performance, stresses deposit growth, better service, staffing, green lending, MSME credit, and expanded presence in underserved areas

MSME Credit top ₹40 trn; growth in active loans slowdown in FY25: CRIF

Credit to MSMEs grew 20% in FY25 to ₹40 trillion, driven by PSL norms, digitisation, and government support, even as active loan growth and term loan share moderated

Credit growth drops to 8.97% in May, lowest level in three years

Credit growth slows as banks tighten lending amid stress in microfinance and unsecured loans; deposit growth outpaces credit by 100 bps in May 30 fortnight

Sri Lanka restructures nearly $931 million in credit lines with India

The deal between the two countries will facilitate deeper cooperation on multiple projects including an energy hub