ADVERTISEMENT

Bank Credit Growth Flattens A Tad In Latest Fortnight But Continues To Be Robust: CareEdge

Credit growth has remained robust even amid the significant rise in interest rates, global uncertainties and supply chain issues.

<div class="paragraphs"><p>Indian rupee bank notes. (Source: Usha Kunji/BQ Prime)</p></div>
Indian rupee bank notes. (Source: Usha Kunji/BQ Prime)

BQ Prime’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 BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. 

CareEdge Research Report

Credit offtake rose by 15.5% YoY for the fortnight ended February 24, 2023. In absolute terms, credit offtake expanded by Rs 15.6 lakh crore to Rs 134.5 lakh as of February 24, 2023 from March 2022.

The growth has been driven by personal loans, robust growth in non-banking financial companies, higher working capital requirements due to inflation and an Indian currency depreciation and lower borrowings from overseas markets.

With a larger base, deposit growth witnessed a slower growth at 10.1% YoY compared to credit growth for the fortnight ended February 24, 2023.

Deposit rates have already risen and are expected to go up even further due to elevated policy rates, intense competition between banks for raising deposits to meet strong credit demand, a widening gap between credit and deposit growth, and lower liquidity in the market.

The short-term weighted average call rate has reached 6.72% (as of February 24, 2023) increasing by 104.0% YoY and 86.0% from March 31, 2022, due to a rise in policy rates and lower liquidity in the system.

Click on the attachment to read the full report:

CareEdge - Credit Growth Flattens.pdf
Opinion
India Infrastructure Growth Story: Nirmal Bang

DISCLAIMER

This report is authored by an external party. BQ Prime 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 BQ Prime.

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