
RBI wants lenders to identify 'wilful defaulters' within 6 months
Wilful defaulters will not be eligible for restructuring of the credit facility.
Wilful defaulters will not be eligible for restructuring of the credit facility.
Growth in credit was led by bank branches in metropolitan centres, says RBI.
Incremental growth in FY22 over FY21 was ₹9.41 lakh crore.
Retail credit is expected to grow the fastest at 17-19%.
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.
According to ICRA, with incremental restructuring under Covid 2.0, the overall standard restructured loan book for banks increased to 2.9% of standard advances as on Sept. 30, 2021.
Change in credit scenario is evidenced by the fact that even traditional banks and financial institutions are now looking to enter the Buy Now Pay Later space.
Through an outreach programme after the Budget, finance minister Nirmala Sitharaman explains how her Budget proposals would aid economic growth while remaining fiscally prudent.
The performance of banks in rural and MSME lending has been inadequate even after the considerable expansion of the scope of priority-sector loans.
As shopping on mobile phones increases, India’s biggest NBFCs Bajaj Finserv and Bajaj Finance have big plans to expand their digital footprint.