Page 2 - 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

State-run banks cautious; target modest 11-13% credit growth in FY26

Bankers said credit growth is expected to be sluggish in FY26 owing to weaker demand across unsecured loans, mortgages

Canara Bank Q4FY results: Net profit rises 33% to Rs 5,004 crore

Canara Bank posted a 33 per cent YoY rise in Q4 net profit to Rs 5,004 crore as other income rose 22 per cent while margins came under pressure amid rate cut transmission

Quicker credit data updates will aid underwriting: TransUnion CIBIL MD, CEO

CIs get fresher data when underwriting or extending additional lines of credit, says Bhavesh Jain

Non-food bank credit growth decelerates to 12% in March 2025, says RBI

The data released by RBI, compiled from 41 select scheduled commercial banks (SCBs) that account for nearly 95 per cent of total non-food credit, highlights notable trends across key economic sector

Credit growth to agriculture slows to 10.4% in March 2025: RBI data

The bank credit growth to the agriculture sector slowed to 10.4 per cent year-on-year for the fortnight ended March 21, while advances to the industry remained flat at 8 per cent, as per the RBI data released on Wednesday. The Reserve Bank of India (RBI) has released the data on sectoral deployment of bank credit collected from 41 select commercial banks, accounting for about 95 per cent of the total non-food credit deployed by all banks taken together. Credit to agriculture and allied activities registered a growth of 10.4 per cent (y-o-y) as of the fortnight ended March 21, 2025, against 20 per cent in the corresponding fortnight of the previous year. "Credit to industry expanded by 8.0 per cent (y-o-y) as on the fortnight ended March 21, 2025, same as in the corresponding fortnight of the previous year," the RBI said. Among major industries, outstanding credit to 'petroleum, coal products and nuclear fuels', 'basic metal and metal products', 'all engineering' and 'construction'

Bank of Maharashtra's credit growth surpasses total deposit growth

The lender's total advances grew by 17.8 per cent year-on-year to Rs 2.4 trillion, while on a quarterly basis, advances were up by 5 per cent