Page 3 - Credit Growth

J'khand's credit potential for FY26 priority sector lending at Rs 88,303 cr

The credit potential for the priority sector lending in Jharkhand has been projected at Rs 88,303 crore for the next fiscal, an increase of about 64 per cent from the current financial year, an official said on Saturday. It was fixed at Rs 54,008.31 crore for the year 2024-25. Priority sector lending (PSL) is a policy tool aimed at ensuring that key sectors crucial to the nation's development receive adequate financial support. Mandated by the Reserve Bank of India (RBI), PSL obligates banks to allocate a specified proportion of their loans to sectors such as agriculture, education, housing, and small industries. "The credit potential for the priority sector in the state has been projected at Rs 88303.77 crore for the year 2025-26, as against Rs 54,008.31 crore for the year 2024-25, showing an increase of 63.50 per cent," the official said. Earlier, Jharkhand Finance Minister Radha Krishna Kishore launched the state Focus paper 2025-26 emphasising the need for sustainable agricult

Credit growth moderates in personal loan segment in Dec: RBI data

Bank credit to personal loan segment moderated to 14.9 per cent year-on-year in December, largely due to decline in growth in 'other personal loans', 'vehicle loans' and 'credit card outstanding', according to Reserve Bank data released on Friday. The RBI has released data on sectoral deployment of bank credit for December 2024 collected from 41 select commercial banks, accounting for about 95 per cent of the total non-food credit deployed by all commercial banks. On a year-on-year (y-o-y) basis, growth in non-food bank credit as on the fortnight ended December 27, 2024 moderated to 12.4 per cent as compared to 15.8 per cent for the corresponding fortnight of the previous year. According to the data, bank credit to agriculture and allied activities registered a growth of 12.5 per cent (y-o-y) as on the fortnight ended December 27, 2024 (19.4 per cent for the corresponding fortnight of the previous year). Further, credit growth to industry remained almost flat at 7.4 per cent ...

Govt approves Mutual Credit Guarantee scheme to strengthen MSME sector

Mutual Credit Guarantee scheme will provide 60% guarantee coverage for loans up to Rs 100 crore

Banking sector funds: Invest now to capitalise on credit growth pickup

The ideal time to invest in sector funds is during a downturn so that investors can capitalise on a turnaround in 1.5-2 years

E-commerce spend driving use of credit cards in non-metros, says Visa

Credit card transactions saw a substantial 175 per cent increase in Tier-III cities, compared to just a 27 per cent increase in Tier-I cities

Muted deposit and credit growth sends PSB stocks into a tailspin

While state-owned Union Bank of India reported a 2.2 per cent sequential growth in advances in Q3FY25, its deposits shrank by 2 per cent during the same period

Banking credit growth to remain subdued around 10% for FY26: ICRA

Credit growth may ease to 9.7-10.3 per cent in FY26, weighed down by the persisting high CD ratio and implementation of the proposed changes in the liquidity coverage ratio (LCR) framework, ICRA said in a report. ICRA has revised its credit growth estimate downwards to 10.5-11 per cent for FY25 from its earlier estimate of 11.6-12.5 per cent. In its recent report, ICRA highlighted that with the banks focusing on reducing their credit-to-deposit (CD) ratio and reducing their exposures to unsecured retail and non-banking financial companies (NBFCs), the overall credit growth has moderated in the past few months, it said. Consequently, credit and deposit growth has almost aligned with each other and ICRA expects the trend to continue, the rating agency said in the report. The persisting high interest rates and the slowdown in credit growth, especially towards high-yielding advances will impact the margins of the banking sector, it said. The capital ratios of several banks remain ...

Credit grows at 10.6% and deposits at 10.7% in November 29 fortnight

Data shows outstanding deposits in the fortnight ending November 29 stood at Rs 220.17 trillion, while outstanding credit stood at Rs 175.09 trillion

Growth in bank credit to NBFCs declines sharply to 6.4%: RBI data

Non-food credit increased at slower clip of 12.8% in October compared to 15.5% a year ago, says RBI

Deposit growth slows fortnight ended Nov 15, credit growth takes a lead

Credit growth in the fortnight ended November 15 slowed to 11.15 per cent year-on-year (YoY), while deposit growth reached 11.21 per cent

PSBs to launch new products in 3-4 months to ramp up credit growth

Financial Services Secretary M Nagaraju on Tuesday said public sector banks will unveil new products in the next few months to improve credit growth. "We are actually committed to enhancing, and we want to push as much credit as possible because we have a huge number of young people," he said while addressing the Financial Inclusion and Fintech Summit organised by CII here. Public sector banks are going to launch new products in the next 3-4 months to push credit for all sectors, including MSME, he said. Over the last few years, the government has already taken multiple steps to improve credit availability to small borrowers, including announcing a new credit model in the Budget to lend to borrowers with no previous financial records. Though the banking sector is robust, Nagaraju said rising digital frauds are posing a risk to financial sector stability, and banks should focus on addressing this challenge. Both digital innovations and financial literacy will help mitigate this, he

MSMEs can boost finances with formal registration, digital payments: RBI DG

The deputy governor highlighted that despite their importance, MSMEs often struggle to secure timely and adequate credit

Deposit growth equals credit in November 1 fortnight, shows RBI data

Credit growth has exceeded deposit growth since the fortnight ended March 25, 2022, leading to a widening gap that reached as much as 700 basis points

SME, agri, corporate may take SBI loan growth past industry average

Xpress Credit portfolio, which declined in Q2, also expected to rebound

Govt to decide soon on Rs 100 crore credit guarantee scheme for MSMEs: FM

Union Finance Minister Nirmala Sitharaman on Saturday said that the Rs 100 crore credit guarantee scheme for MSMEs which was announced in the budget this year will soon be placed before the Union Cabinet for approval. Highlighting the five announcements made in this budget for MSMEs she said, "the introduction of a special credit guarantee corpus to help MSMEs will be very helpful during the time of distress...." "The Rs 100 crore credit guarantee scheme will soon be placed before the cabinet. Immediately after getting approval from cabinet, the scheme that will provide guarantee through MSME ministry and banks will be implemented," the Union Finance Minister said, while attending the National MSME Cluster Outreach Programme here. "The grievance, which has been there for a very long time, is that the MSMEs can get working capital from banks but they don't get term loans, loans for plant and machinery. Now the guarantee will be provided under the scheme," she explained. Further stat

Banks' credit-deposit ratio on downward trend, at 79.5% on Sept 20

Banks have intensified efforts to strengthen their liability franchise

Deposits outpace credit growth after 30 months, hinting at stability

Credit growth coming off its highs has largely contributed to credit-deposit growth aligning

HDFC Bank's deposit growth outpaces credit in Q2, helping meet target

Country's largest private sector has indicated that it would grow its advances at a slower pace than deposits

Increase share in ground-level agri credit: FM asks Northeast RRBs

Union Finance Minister Nirmala Sitharaman on Monday directed the Regional Rural Banks (RRBs) to increase their share in ground-level agriculture credit disbursement with a special focus on horticulture and allied agriculture activities like piggery, poultry, dairy and fisheries, officials said. Chairing a review meeting of the RRBs in the northeastern states at the civil secretariat here, Sitharaman urged the banks to put greater thrust on the identification of the right beneficiaries while sanctioning loans under various central schemes, they said. The meeting focused on business performance, upgrading digital technology services, and fostering business growth in allied agriculture and MSME clusters, they added. Among those present in the meeting were chairpersons of RRBs and sponsor banks, representatives of RBI, NABARD and SIDBI, and senior officers of all the northeastern states.

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