Banks have reported a robust pick up in credit in the two fortnights of February 2022 after a decline in the two fortnights of January, according to Reserve Bank of India data.
All scheduled Banks disbursed ₹79,149 crore in the fortnight ended February 25, and ₹84,142 crore in the preceding fortnight.
Crisil has estimated that gross bank credit in FY22 will grow by 9-10 per cent against 5 per cent in FY21.
Further, the rating agency has projected a 11-12 per cent growth in gross bank credit in FY23, with a revival in corporate credit trajectory after a period of subdued growth.
Crisil expects the banking system’s gross non-performing assets (GNPAs) to decline to 5.8—6.3 per cent of gross advances in FY22 from 7.3 per cent in FY21. It sees GNPAs to decline to 5.0-5.5 per cent in FY23, with corporate asset quality seeing a sharp improvement.
Deposits of all scheduled Banks increased by ₹91,145 crore in the fortnight ended February 25 against ₹94,142 crore in the preceding fortnight.