Comments
Credit growth in the banking sector is showing signs of pick-up in the so-called busy season.
After loans in the banking system declined by ₹58,797 crore in the first fortnight of October, the trend has reversed. In the second fortnight, loans have gone up by ₹52,414 crore.
According to M Anjaneya Prasad, Executive Director, Syndicate Bank, loan growth is coming only from the retail, agriculture and micro and small enterprises segments. Demand for loans from the corporate sector continues to be tepid.
As per the Reserve Bank of India’s scheduled banks’ statement of position, the banking system’s deposits, which declined by ₹75,395 crore in the first fortnight, increased by ₹62,239 crore in the second fortnight.
Typically, banks build up their balance-sheet in the run-up to the end of each quarter and this short-term business (deposits and advances) comes down at the beginning of the subsequent quarter.
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.