Page 10 - Credit Growth

Credit growth will come from retail, MSMEs: SS Mallikarjuna Rao, PNB MD

"MSMEs are working hard to come back to normalcy. We expect a robust comeback from them in October, particularly in some sectors"

Bank credit growth in FY21 to hit multi-decade low of 0-1%: CRISIL

Prior to the disruption caused by covid-19, bank credit was already slower than normal in FY20 due to subdued economic activity and risk averseness of the lenders

Covid-19: Bank NPAs may worsen to 11.6 per cent by FY21 end, says Icra

With an increase in stress on asset quality and profitability, state-owned banks may need Rs 45,000-82,500 crore of capital in this financial year under a weak credit growth scenario, it said

Last rate cut for now but there're more bullets in RBI's chamber

Following this, the reverse repo rate, or the rate at which the banks perk extra liquidity with the RBI, was reduced to 3.35 per cent from 3.75 per cent - both at their historic lows.

Private equity players see new business opportunities in post-Covid world

Currently, the PE exposure in credit is limited and constitutes less than a 2 per cent share of the overall credit offered to industry.

Banks park Rs 8.42 trn of surplus funds with RBI, hinting lending pause

The record amount is a worrying sign for the economy: either there is no demand for credit or banks are scared to lend.

Slowdown blues: Incremental credit flow drops 64% to Rs 6.04 trn in FY20

Economic slowdown hits activity, adding fuel to the fire

Covid-19 impact: Credit growth decelerates in almost all sectors in March

SBI, however, notes that incremental credit to industry is highest in 147 months

Coronavirus impact: Credit growth likely to remain modest, says RBI

MPC report says better transmission of rates would remain priority

Credit growth may rise to 8-9% in FY21 on better economic activity: Crisil

During this fiscal, some growth momentum is expected in the fourth quarter, after subdued three quarters due to traditional fiscal year ending growth

Cut in lending rates insufficient to boost credit growth: BofA Securities

The Reserve Bank cut rates in five consecutive reviews in 2019 before pausing in December due to surge in inflation

India should double credit growth to 15% for $5 trn economy by '25: Bankers

The country has recorded high double-digit credit growth in the past and is capable of achieving similar growth now as well, they added

Non-food credit growth slides to 7% in Dec 19 from 12.8% a year ago

All four categories - agriculture, industry, services and retail - segments showed deceleration in credit growth

Time to act is now! PSBs are fast losing market share to private peers

The truth is - falling market share of state-run banks is not something many will want to comment on record

Recoveries from stressed assets will be much better in H2FY20: SBI Chairman

Rajnish Kumar is hopeful that resolution time of stressed asets will fall below 5 years

Large, medium enterprises see 7-year fall in credit quality in April-Dec

The asset quality deteriorated for small enterprises (SMEs) as well but with lesser intensity, according to CARE Ratings

Letter to BS: PSB lending should be meaningful to prevent capital wastage

Public sector banks have to adopt new technologies and security measures to project a better image and make themselves less vulnerable and globally competitive

Fitch cuts India's GDP growth to 4.6% as credit crunch cripples economy

The rating agency sees moderate fiscal slippage, retains sovereign rating and outlook

Budget 2020: Banks, NBFCs suggest ways on taxation, improving credit growth

For the last three PSBs, the govt should run these under a public-private partnership model, said a senior banker.

Govt looks to ease lending rules for NBFCs to lift cash-starved financiers

The government is keen to revive credit growth and spur Asia's third-largest economy, which expanded at the slowest pace in six years in the quarter to Sept. 30