SME Times is powered by   
Search News
Just in:   • Committee postpones vote on Trump impeachment charges  • Trump 'signs off' on deal to pause US-China trade war  • Cabinet allows NHAI to set up InvIT  • New scheme in pipeline to improve bank credit to exporters  • 'Flexible inflation targeting be reviewed only after March 2021' 
Last updated: 15 Apr, 2019  

Rupee.9.New.Thmb.jpg Bank credit growth

Rupee.9.New.jpg
   Top Stories
» New scheme in pipeline to improve bank credit to exporters
» 'Flexible inflation targeting be reviewed only after March 2021'
» Auto cos focus on exports to push sales
» Nov vehicle registration up 2 per cent
» Auto sales decline by 12 pc in Nov: SIAM
Bikky Khosla | 15 Apr, 2019

Bank credit rose by 13.24 per cent to Rs 97.67 lakh crore in the fortnight to March 29, while deposits grew by 10.03 per cent to Rs 125.72 lakh crore for the period, according to data released by the Reserve Bank of India (RBI) last week. This is the second consecutive double-digit credit growth after the same had declined to 4.54 per cent in FY17 at Rs 78.41 lakh crore, which was the lowest since 1963. The news sounds good.

According to detail RBI data, loans to the services sector almost doubled with a 23.7 per cent growth in February. This is encouraging. Similarly, credit to agriculture and allied activities, infrastructure, chemical & chemical products and all engineering sectors saw healthy growth. However, credit to industry rose by 5.6 per cent in February, up from an increase of 1 per cent. Also, overall there was a loss in momentum as in the previous fortnight to March 15, credit demand had grown by 14.46 per cent.

In another development, while RBI delivered a second consecutive policy rate cut recently, according to experts, tight liquidity conditions are likely to limit banks' ability to cut lending rates. In contrast, the RBI Governor viewed that the central bank may come out with guidelines on transmission of rate cuts by banks to consumers. He added that RBI will nudge bank CEOs to pass on the benefit of lower policy rates. It will be interesting to see how much of an impact RBI can have in this direction.

Meanwhile, IIP growth dropped to a 20-month low in February in a worrying sign for GDP growth prospects, while retail inflation rose to 3.18 per cent, from a rise of 2.93 per cent in February, but remained within the central bank’s comfort zone, creating room for more interest rate cuts. At the same time, the IMF predicted that the Indian economy will expand at 7.3 per cent this fiscal year, but to secure its growth prospects, continuing with structural reforms is a must.

I invite your opinions.

 
Print the Page
Add to Favorite
 
Share this on :
 

Please comment on this story:
 
Subject :
Message:
(Maximum 1500 characters)  Characters left 1500
Your name:
 

 
  Customs Exchange Rates
Currency Import Export
US Dollar
66.20
64.50
UK Pound
87.50
84.65
Euro
78.25
75.65
Japanese Yen 58.85 56.85
As on 13 Dec, 2019
  Daily Poll
Ease of doing business improved in last one year
 Yes
 No
 Can't say
  Commented Stories
» MRF to set up a new plant in Gujarat(2)
» India software market grew 12.4% in H1 2019: IDC(1)
» European Union: A promising market for Indian handicraft exporters(1)
» Action plan for successful export marketing(1)
» "Govt's mantra Sabka Saath, Sabka Vikas, Sabka Vishwas"(1)
 
 
About Us  |   Advertise with Us  
  Useful Links  |   Terms and Conditions  |   Disclaimer  |   Contact Us  
Follow Us : Facebook Twitter