Demand in Indian economy to overpower everything: BOI MD
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.
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Consumer Credit Growth At All-Time High
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.
Cause of concern! Bank credit to manufacturing declines
Bank credit to 10 out of the 15 sectors declined in the last decade, an analysis by MVIRDC World Trade Centre (WTC) Mumbai shows.
Credit growth crosses ₹10 lakh cr mark in FY22
Public sector banks continue to crowd in credit growth from private banks, says an SBI Research report.
Giving Credit Where It’s Due
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
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.
Cautiously optimistic credit outlook for FY22: CRISIL
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.
Has Covid-19 made PSBs more vulnerable?
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.
LVB crisis: Same story, different characters
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.
Covid-19: Lockdown extended till May 17
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.
