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This Article is From Jul 17, 2021

India Banking - Credit-Deposit Ratio At Its Lowest; Spreads Have However Improved: Dolat Capital

India Banking - Credit-Deposit Ratio At Its Lowest; Spreads Have However Improved: Dolat Capital
An employee holds a stack of electronic payment receipts and Indian Rupee banknotes at a BPCL fuel station in Bengaluru. (Photographer: Dhiraj Singh/Bloomberg)

BQ Blue's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer BloombergQuint's subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Dolat Capital Report

Deposit growth continues to outpace credit growth by a wide margin, aiding system liquidity.

Deposit growth has remained ~4% higher than credit growth for almost a year now and this has pushed down the credit-deposit ratio by over 5% to its lowest in a decade (excluding of demonetisation period).

Consequently, excess liquidity parked with the Reserve Bank of India under the reverse-repo has further increased in recent months.

Weak demand, impact of lockdowns, and risk aversion has limited growth thus far.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

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