Loan growth is likely to stay sluggish this yr due to weak demand & cautious approach on unsecured lending. Going forward, gap between credit growth & deposit growth is likely to shrink.
Sales revenue of manufacturing firms saw weak growth in September quarter. Rural demand indicators performed better than urban. Capex must rapidly pick up in 2nd half of the fiscal.
To avoid high credit-deposit ratios, banks need to maintain healthy deposit base — a difficult task considering the competition they face from MFs & physical assets like gold, real estate.
Unhindered growth in lending has been associated with financial crisis, but monitoring a simple metric like credit-to-GDP gap could help identify early indications of an impending crisis.
During first nine months of this fiscal, personal loans and services sector drove up credit growth, shows Bank of Baroda report. However, manufacturing sector is lagging behind.
Prime Database showed banks have raised over 3.51 trillion rupees through certificate of deposits in April-October, 22% higher than the 2.87 rupees raised in 2021-2022.
With regional parties struggling to project a unified Opposition in Parliament, and no leader in Delhi able to mediate, Centre-state tensions are playing out as open conflict.
Instead of buying more Mirages outright in early 2000s, the requirement was tweaked in favour of a medium-weight, multi-role fighter with Mirage-like performance.
Pakistan not only has zero chance of catching up with India in most areas, but will inevitably see the gap rising. Its leaders will offer its people the same snake oil in different bottles.
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