The State Bank Of India (SBI), in its latest research update of Ecowrap has noted that the Q3 of current fiscal has witnessed a visible expansion in credit growth across sectors. The incremental CD ratio beginning Q3 FY22 is currently at 133 as against the incremental CD ratio of only 2 during H1 FY22. Incremental deposits in the banking system have declined by Rs 2.2 lakh crores in this time period, whereas credit growth has picked up by Rs 3.5 lakh crores.
The recent credit growth is visible across sectors. Sectors where demand for credit started picking up during last three months include NBFCs, Telecom, Petroleum, Chemical, Electronics, Gems & Jewellery and Infrastructure including Power and Roads. These are mostly having big ticket disbursements. This, apart our recent understanding of market participants, suggest that demand from non-PSU credit is set to outpace that of PSU credit in Q4 FY22. Sectors such as Healthcare, Commercial Real Estate, Pharmaceuticals, Infrastructure, NBFCs, and Construction will be the largesse of such credit.
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