Credit growth News

RBI governor stressed banks should raise more capital due to uncertain global financial environment. He assures RBI keeps track of excessive lending in any sector - NBFCs, small financial banks, etc. India's inflation has reached to peak and now it is in declining phase, said Das.

The agency, which maintained a 'neutral' sector outlook and 'stable' rating outlook for the NBFCs, said its expectations will hold true in the absence of any negative event. Credit growth for entities it rates will rise to 14 per cent in FY23 from 8 per cent in FY22. Since the default by IL&FS in 2017, NBFCs have faced difficulties which only aggravated with the outbreak of the pandemic, which affected liquidity.

Though there's no denying that credit growth continues to decline, the RBI data on sectoral credit growth shows only one side of the story as credit per se has been expanding through non-banking channels, primarily in the debt market, said a report.

For the year to March, banks' outstanding credit stood at Rs 78.81 trillion compared to Rs 75.01 trillion as of April 1 2016, show the central bank data.

India's bank note reform has pushed up deposit growth and boosted liquidity that may in turn depress inflationary pressures, the Development Bank of Singapore (DBS) said Thursday.

Stressing on need to continue with sound domestic policies and reforms, RBI Governor Raghuram Rajan today said banks' asset quality stress has to be dealt first in order to revive the credit growth.

Credit growth in the country is unlikely to revive "materially" in near term as demand conditions are still acting as a laggard, says an SBI report.

Bank credit growth continued to remain in double-digits clipping at 11.62 percent year-on-year to Rs 71,72,740 crore for the fortnight ending February 19, according to the Reserve Bank data

Scheduled commercial banks' credit growth slowed to 8.6 percent in quarter ended June against the 12.9 percent in the same period last year, the RBI data showed.

Non-food credit growth of commercial banks slowed to 7.7 percent in June 2015 as against 13 percent expansion in the same period last fiscal.

A day ahead of a meeting between Finance Minister Arun Jaitley and top bankers, private sector lender Yes Bank on Thursday joined its peers in promising to deliver a rate cut soon.

Bank credit grew at a healthy rate of 11.47 percent to Rs 68,30,965 crore in the fortnight ended April 3, according to the Reserve Bank data.

Improvement in the asset quality of Indian banks and growth in credit offtake is likely to take more time as the problems in mining and infrastructure sector are yet to be resolved, global rating agency S&P said on Wednesday.

The Reserve Bank on Thursday issued guidelines with the two-fold aim of ensuring capital buffer for difficult times and restricting banks from indiscriminate lending during the periods of excess credit growth.

Credit extended by Indian banks' branches operating abroad increased by 31.2 percent to Rs 7.68 lakh crore (USD 127.9 billion) in 2013-14.

Acknowledging that bad loans are "problem area," Financial Services Secretary Hasmukh Adhia on Friday said the low demand for credit is an area of concern and there is need to increase the same.

Concerned over rising bad loans, Finance Minister Arun Jaitley on Thursday asked the chiefs of PSU banks to deal sternly with the issue of rising non-performing assets without any fear or favour.

The five associate banks of SBI do not require any additional capital infusion this fiscal as the credit growth is tepid, a top official said.

Credit growth of commercial banks continued to remain weak with a growth of just 9.7 percent at Rs 61,46,526 crore for the fortnight to September 19, according to the RBI data.

Increase in non-food credit was a tad lower than the 13 percent growth in the previous two months, according to the Reserve Bank data.