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.
Indians tend to fuss more about the damage done to the Indian psyche by Thomas B Macaulay’s infamous Minute of 1835, but he was preceded in this unholy endeavour by James Mill.
A govt official said that although ATF prices for domestic market had been expected to rise 100 per cent in April, increase was moderated to 25 per cent to cushion burden on domestic passengers.
It’s easy to understand why the government can’t speak the hard truth. When this war ends, as all wars do, India’s interests will lie with both the winner and the loser.
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