ANI
11 Sep 2024, 17:33 GMT+10
New Delhi [India], September 11 (ANI): A survey conducted by industry body FICCI and Indian Banks' Association (IBA) suggested that the outlook for non-food industry credit growth over the next six months is optimistic with 62 per cent of the participating banks expecting non-food industry credit growth to be above 12 per cent.
The nineteenth round of the FICCI-IBA survey was carried out for the period January to June 2024.
A total of 22 banks including public sector, private sector and foreign banks participated in the survey. These banks together represent about 67 per cent of the banking industry, as classified by asset size.
The Indian economy and the banking sector remain robust and resilient, the survey found.
With improved balance sheets, banks are supporting economic activity through sustained credit expansion. However, credit growth is outpacing deposit growth, which could lead to liquidity challenges for the banking system.
Raising deposits to keep pace with the loan growth and keeping the credit cost low remains on the top of banks' agenda, the survey said.
The survey findings show that long-term credit demand has seen continued growth for sectors such as Infrastructure, metals, iron and steel, engineering.
Infrastructure is witnessing an increase in credit flow with 77 per cent of the respondents indicating an increase in long-term loans. This could be attributable to the government's capital expenditure push for the infrastructure sector.
More than two-thirds of respondent banks (67 per cent) reported a decrease in the share of CASA deposits in total deposits in the current round of survey. Term deposits have picked up pace as reported by the respondent banks due to higher/attractive rates. 80 per cent of the participating Public Sector Banks reported a decrease in share of CASA deposits during the first half of 2024 while over half the private sector bank respondents reported a decrease in CASA depositsIn continuation with the trend witnessed in the previous round, a large majority (71 per cent) of the respondent banks reported a decrease in the NPA levels in the last six months. A significant 90 per cent of responding PSBs have cited a reduction in NPA levels while amongst participating Private sector banks, 67 per cent have cited a decrease. All the respondent Foreign banks cited no change in NPA levels over the last six months. Amongst the sectors that continue to show a high level of NPAs, most of the participating bankers identified sectors such as Textiles, Infrastructure and Food Processing.
Over half of the respondent banks in the current round believe that Gross NPAs would be in the range of 2.5 - 3 per cent over the next six months. 19 per cent respondents are of the view that NPA levels would be in the range of 2- 2.5 per cent. An overwhelming majority (70 per cent) of Public Sector respondents expect gross NPAs to be in the range of 2.5-3 per cent. 44 per cent of private bank respondents expect NPAs to be in the range of 2-2.5 per cent while all foreign bank respondents expect NPAs to be in the range of 2.5-3 per cent.
As per respondents, some of the sectors that may continue to show NPAs over next six months include Agriculture, Textiles and garments, MSMEs, and GemsJewellery. (ANI)Get a daily dose of Philippine Times news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Philippine Times.
More InformationWASHINGTON, D.C.: President Donald Trump claimed he was unaware that the term shylock is regarded as antisemitic when he used it in...
PARIS, France: A strike by French air traffic controllers demanding improved working conditions caused significant disruptions during...
OMAHA, Nebraska: With Congress considering cuts totaling around US$1 trillion to Medicaid over the next decade, concerns are rising...
ROME, Italy: Quick thinking by emergency responders helped prevent greater devastation after a gas station explosion in southeastern...
WASHINGTON, D.C.: President Donald Trump is drawing praise from his core supporters after halting key arms shipments to Ukraine, a...
MOSCOW, Russia: This week, Russia became the first country to officially recognize the Taliban as the government of Afghanistan since...
HONG KONG: China has fired back at the European Union in an escalating trade dispute by imposing new restrictions on medical device...
NEW YORK, New York - Monday's trading session saw mixed performances across U.S. and global markets, with several major indices posting...
WASHINGTON, D.C.: The U.S. government has granted GE Aerospace permission to resume jet engine shipments to China's COMAC, a person...
DUBAI, U.A.E.: Saudi Aramco is exploring asset sales as part of a broader push to unlock capital, with gas-fired power plants among...
MILAN, Italy: Italian regulators have flagged four non-EU countries—including Russia—as carrying systemic financial risk for domestic...
NEW YORK CITY, New York: With just weeks to spare before a potential government default, U.S. lawmakers passed a sweeping tax and spending...