Home · National News · World News · Viral News · Indian Economics · Science & Technology · Money Matters · Education and Jobs. ‎Money Matters · ‎Uttarakhand News · ‎Defence News · ‎Foodies Circle Of IndiaCredit cycle picking up, larger players at forefrontDoonited News
Breaking News

Credit cycle picking up, larger players at forefront

Credit cycle picking up, larger players at forefront
Want create site? Find Free WordPress Themes and plugins.

The report indicates that ~57% of incremental loan growth was driven by SBI, HDFC Bank, and ICICI Bank during 9MFY21. These banks reported loan growth of 3-7% QoQ in the December quarter. Government-backed Emergency Credit Line Guarantee Scheme (ECLGS) played an instrumental role in credit growth during the quarter. ECLGS disbursements formed 45% of FY21 YTD incremental loans.

Credit growth in many business segments has crossed pre-COVID levels. And, momentum is expected to remain strong. The systemic loan growth is expected to remain ~11%/13% in FY22/FY23.

Covid stress receding:

In a major relief to the banking sector, the Supreme Court has refused to extend the moratorium period beyond six months. It will compel the borrowers under moratorium to start repaying at the earliest.

Read Also  COVID-19: India’s 12 major ports witnessed a 4.59% fall in cargo handling

Large banks have managed to keep their collection efficiency steady during this period. Now, with the Supreme Court’s favorable decision, the CE will improve further. With this, high provisioning requirements are expected to recede going ahead. It will aid credit cost normalization for larger Banks over FY22E/FY23E. However, elevated provisioning requirements could continue for mid-size banks like RBL, Bandhan, and DCB.

The banks have also done well with no major worry appearing on slippages/restructuring front. Restructured books across all large banks stood in 0.3-0.8% range. The outlook remains in control with slippages expected to normalize from FY22E onwards.

Did you find apk for android? You can find new Free Android Games and apps.

Related posts

doonited mast
%d bloggers like this: