"If you want to reach a USD 5 trillion economy, the outstanding credit, which is around Rs 95-98 trillion, it will have to be doubled, which means we need to grow (credit) at around 15 per cent," State Bank of India's Chairman Rajnish Kumar said at an IBA event.
The bank saw Rs 1062 crore worth of new additions to bad loans in the third quarter. The lender had reported slippages of Rs 800 crore in the first and Rs 1000 crore in the second quarter of current financial year.
The bank may look at raising up to Rs 4,000 crore via Additional Tier-1 bonds in the fourth quarter if required.
Rai said that banks may impose the commitment fees on unutilised credit limits from large and mid-sized corporates.
Bank credit numbers give us an insight about the extent of the slowdown
In this episode of Editor’s Take, Shraddha Sharma talks to Moneycontrol's Deputy Executive Editor Ravi Krishnan about the unique rate cut by the MPC
The Indian banking sector has been reeling under the pressure of rising bad loans. However, lenders, including state-run banks, showed improvement in the asset quality.
Credit to NBFCs grew a whopping 48 percent which reflects the bid to provide funds to NBFCs in the aftermath of the liquidity crisis that engulfed the sector since September last year.
The old private sector lender, which reported a deterioration in its asset quality in the second quarter, will look at pulling itself up in the next two years as it aims to raise Rs 800 crore this year.
Credit growth may pick up to 15 percent in FY18 from 9 percent in FY17 with the demonetisation shock tapering off and rate cuts on the anvil, according to Bank of America- Merrill Lynch.
The new fiscal year began on a sour note for bank credit growth, which slipped to 4.32 per cent in the fortnight to April 28, much lower than the 63-year low level of 5.08 per cent in fiscal 2017, the latest RBI data showed.
Kailash Baheti of Magma Fincorp expects improvement in provision coverage ratio.
Having emerged unscathed from the bad loan mess roiling the banking sector, HDFC Bank is now looking to expand its corporate loan book.
In one of his addresses, Prime Minister Narendra Modi spoke on the timing of demonetisation, saying that you treat a patient when he is healthy and not when he is weak. His assessment of the economy being healthy at the time of demonetisation seems to be correct if the latest GDP numbers are to be believed.
Srikanth Vadlamani of Moody's Investors Service says broader credit growth will be lower in Q4 than before demonetisation levels.
PTI,Bank of Maharashtra,signs of improvement,break even in the Q4,credit growth
Demonetisation, capital constraints and spike in bad loans has hit the government-owned IDBI Bank hard as its net loss widened to Rs 2255 crore in the October to December period.
A top fund manager was quoted as saying that the largest consolidation in the banking sector is being explored by the shareholders of the two banks, according to a report in The Times of India.
The public lender's net loss for the December quarter improved to Rs 130 crore from Rs 424.70 crore in the year-ago period.
Credit growth of United Bank of India (UBI) at the end of FY 2016-17 will be as low as 7-8 percent due to demonetisation impact, its MD & CEO P Bajaj said.
"The Fed has put market sentiment before the economy yet again. It is doing US stocks no favors by provoking an unnecessary bubble with its certain subsequent burst," Charles Dumas said in a new research note Thursday, following the decision by the US Federal Reserve to defer its next rate hike.
Meeting corporates' credit needs would emerge as a challenge, unless the corporate bond market develops rapidly, diversifying the risk across market participants other than banks.
The slowdown is primarily due to a stagnation in projects, and the low-risk refinancing loans of completed infrastructure projects in sectors like power and roads will help push the credit growth.