Bank credit growth remains robust despite rate hike, shows RBI data
Total bank credit rose by 16.4% on a YoY basis as of Sep’22, supported by higher non-food credit demand.
Total bank credit rose by 16.4% on a YoY basis as of Sep’22, supported by higher non-food credit demand.
From tax collections to credit outflow, capex, sectoral growth, inflation, interest rates, rupee devaluation and external factors, there are challenges to sustaining growth.
Credit for retail loans rose by 7.9% in August compared with 1.6% reported during the year-ago period, says CareEdge.
Private banks are likely to continue to gain market share, though the pace of gains is likely to moderate as PSBs expand the loan portfolio faster.
Though there are signs of improvement in both private corporate sector capex and Centre’s own capex, these are either way off their peak levels in recent past or too small to raise high hopes
Bank of India expects corporate credit to grow as the multiplier effect of the government’s ₹7.5 lakh crore capital expenditure plan kicks in.
Restructured standard advances ratio, especially of services and retail loans, has shown a sharp increase in FY21 though. Some of these could turn into NPAs, adding to banks’ stress assets.
Bank credit to 10 out of the 15 sectors declined in the last decade, an analysis by MVIRDC World Trade Centre (WTC) Mumbai shows.
Public sector banks continue to crowd in credit growth from private banks, says an SBI Research report.
Top 10 players added 82% of incremental cards in January 2022. However, per card spend per month has fallen from a record high YoY growth of 160% in April 2021 to a low of 17.7% in January 2022