India’s growth prospects anything but bright
Prolonged cheap credit regime has led to a clear liquidity trap and irrational stock market boom, both of which are bad for the economy.
Prolonged cheap credit regime has led to a clear liquidity trap and irrational stock market boom, both of which are bad for the economy.
Aided by strong demand recovery, credit ratio rebounds to 1.33 in H2FY21, from 0.54 in H1FY21. GDP could grow at 11% in FY22, but the resurgence in Covid-19 cases is a key downside risk, says CRISIL.
While Indian banks' improved financial metrics do not fully reflect the impact of the Covid-19 pandemic, the under–capitalised PSBs are likely to remain risk averse and lose market share.
The 30-day moratorium on Lakshmi Vilas Bank is similar to YES Bank, protecting depositors and employees, but retail shareholders would be worst hit if amalgamation with DBS Bank India goes through.
The extension, which takes the total day-count of the lockdown to 54, will add to the challenges that the economy was already facing before Covid-19 took the shape of a pandemic.
FM Nirmala Sitharaman will hold similar meetings with representatives from MSMEs, auto, industry associations, financial market stakeholders, and others to address sector-specific issues.
Credit growth outpaces deposit growth—an indication of rising competition, says Ind-Ra; five PSBs exiting RBI’s Prompt Corrective Action framework will add fuel to it as they will look for growth
A report by CRISIL says an uptick in credit demand in FY19-FY20 will require banks to raise funds through fresh deposits.
The loss was much lower than Rs 2,418 crore, the figure estimated by a Reuters poll.
A spate of banking frauds, arrests of the top management at some banks and mounting bad loans have led to drying up of debt from financial system. So who will fund India’s growth story?