Page 6 - Credit Growth

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

Industrial credit growth slumped in July; House Price Index up 5.1% in Q1

Services, Agro credit growth pace accelerates

Bank deposit growth touches six-yr high of 13.5% in fortnight ended Aug 11

Deposit growth in banks reached a six-year high of 13.5 per cent in the fortnight ended August 11, a report said on Monday. Care Edge Ratings said it is the first time since 2017 that the deposit growth has crossed 12.5 per cent. Over the past few months, deposit growth has been half of credit growth, and many lenders have had to hike rates to attract depositors. Credit growth increased 19.7 per cent during the fortnight, driven by the merger between HDFC and HDFC Bank, the report said, adding that it would have been 14.8 per cent if not for the USD 40 billion-amalgamation. In case of deposit growth, the merger impact was more limited, the rating agency said. According to the rating agency, had the HDFC deal not happened, the deposit growth rate would have been 12.8 per cent because of the mortgage major HDFC's reliance on other avenues beyond deposits for its liabilities. The scrapping of Rs 2,000 denomination notes and their subsequent depositing had helped banks with deposits,

Protean, PayNearby partner for providing credit services on ONDC network

Protean eGov Technologies and fintech platform PayNearby have collaborated for providing credit services on the ONDC network for last-mile borrowers and MSMEs. Once launched, the marketplace will also allow for easy discovery of various lending products at affordable pricing, according to a statement. "In this partnership, Protean will serve as an ONDC technology service provider that facilitates availability of credit for last-mile borrowers across the country through PayNearby's well entrenched Distribution as a Service (DaaS) network," it said. Speaking to PTI, Protean eGov Managing Director and CEO Suresh Sethi said there are several people who are not digitally enabled to even get into the account aggregator framework and get credit against their data, or consent for it to be used. "We are looking at this as a sort of intervention which can leverage the physical network provided by PayNearby and the last mile agent can then provide an assisted service and onboarding people to

Franklin Templeton planning to enter private credit industry in India

The firm will soon file with the Securities and Exchange Board of India for a license for a category II Alternative Investment Fund, which will allow it to begin preparing for the private credit fund

Indian banks to witness record profitability in FY24: SBICAPS report

It added that the repo rate is expected to remain at current levels until late in FY24

YES Bank aims to expand margins by 100 bps in next 3 years, says MD

Yes Bank is targeting a credit growth of 15% to 20% for fiscal 2024

KarmaLife raises Rs 44 cr, startup aims to launch more products soon

KarmaLife on Thursday said it has raised Rs 44 crore in an extension to pre-series funding round led by Krishna Bhupal's family office and existing investors. The round saw participation from existing investors, including Artha Venture Fund, Net Graph Investments, Singularity Ventures, LogX Venture Partners, Amit Jain, Vikram Kailas, and Shaji Kumar Devakar, the company said in a statement on Thursday. Founded by Rohit Rathi, Naveen Budda, and Badal Malick in March 2020, KarmaLife operates in a business-to-business-to-consumer model and has partnered with over 50 organisations, which includes Flipkart, Elastic run, Uber, Porter, and Delhivery, among others, to give their employees an option to access their payout before payday. The credit solutions provider startup will use the capital for scaling, expanding into different geographies, launching more products, and spreading awareness about the product, the company founders said. It currently serves over 1,00,000 blue-collar workers

Bank of Baroda aims at 12-15% credit growth in FY23: Executive director

State-owned Bank of Baroda (BoB) on Monday said it expects 12-15 per cent credit growth during the current financial year. During the last financial the bank recorded a credit growth of 16 per cent. "We aim at credit growth of 12-15 per cent while deposits are expected to grow at 12-13 per cent," BoB executive director Lalit Tyagi said on the sidelines of 'Bank of Baroda Rashtrabhasha Samman' Awards 2023 here. The bank is using a digital platform for customer acquisition, he added. The award has been instituted to recognise and promote literary works in various Indian languages (included under the 8th Schedule of the Constitution) as well as to make the best Indian literature available to Hindi readers through translations, thereby broadening the interest and making the novels accessible to a larger set of readers, he noted.

Canara Bank Q4 profit up 90.6% at Rs 3,175 cr, robust NII boosts growth

State-owned lender's board recommends dividend of Rs 12 per share for FY23

Industrial credit growth slips to a 12-month low of 7% in February

The slowdown in industrial credit was much sharper than the slowdown in overall non-food credit, which continued to grow in double digits at 15.9 per cent YoY in February

Credit growth expected to moderate to 10% in FY24 from 15% in FY23: Report

The credit growth momentum is waning in the country and the crucial non-food loans growth is expected to slip to 10 per cent in FY24 from more than 15 per cent in FY23, a Japanese brokerage said on Monday. Ebbing inflationary pressures, especially on the wholesale side which tends to lower working capital needs, and a likely moderation in GDP growth to 5.3 per cent in FY24 were cited as the primary reasons for the lower bank credit growth expectation by Nomura. " we expect credit growth to moderate to 10 per cent in FY24 from 15 per cent in FY23," analysts at the brokerage said in a report, adding that the base effect will also be partly responsible for driving the number down. They also said the rate hikes of more than 2.50 per cent by RBI in the current tightening cycle will impact credit growth through a lagged impact on borrowings, and already, there are some signs of a dent on the home loan front. The credit growth momentum is already moderating, the brokerage said, pointing o