Credit Growth

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

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

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

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

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

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

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 have intensified efforts to strengthen their liability franchise

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

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

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.

Real estate, healthcare firms push private credit deals to record high

The rapid growth in AUM in the last two years may have led to potential over-leverage by borrowers

It will offer 7.35% and 7.40% on fixed deposits below Rs 3 crore for 35 months and 55 months tenors

Credit up by 13.9% Y-o-Y as on Jun 28

The credit-to-deposit ratio of the Mumbai-based private sector lender Yes Bank rose to 86.8 per cent at the end of June from 85.5 per cent at the end of March

UCB executives said besides regulatory push for effective asset quality management, the upturn in credit growth and improvement in margins have helped enhance provision cover

Resource mobilisation challenge, regulatory nudge to weigh on growth

Banks need to re-strategise their business to deal with the persistent gap between credit and deposit growth, RBI Governor Shaktikanta Das said on Friday. He also said that further actions on moderating growth in unsecured loans could be taken, if required. In November last year, RBI had flagged certain concerns on excessive growth in the unsecured retail loans and over-reliance of NBFCs on bank funding. "Recent data suggests that there is some moderation in these loans and advances. We are closely monitoring the incoming data to ascertain if further measures are necessary," he said while announcing the bi-monthly policy. "The message is to convey that RBI is watchful of every aspect of financial sector especially in the banking sector. We are agile, we are watchful and if and when some further measures are required, we will come," he said during an interaction with reporters. The Reserve Bank increased risk weights on unsecured consumer credit and bank credit to NBFCs on Novembe

Tax uncertainty is a big concern for PEs