- With detailed information on taxes and businesses now available in an electronic format, bankers believe SME and self-employed portfolio may see faster credit expansion. These are traditionally the segments banks have shied away from. However, they believe once they have one full cycle of data, credit growth in these segments will accelerate by FY19.
- “What GST will provide us is that for many of these smaller companies, we will have data: So, our ability to understand these businesses, and therefore, lend to them will improve dramatically,” said Rajiv Anand, ED, Axis bank.
- According to central bank data, growth in loans to individuals increased 13.7% y-o-y in May, compared to 19.1% in the same month of 2016. Retail loans have risen in the mid-to-late teens after hitting a bottom of 11% witnessed after demonetisation. Credit to the industry continued to fall for eighth straight month in May, and increased a little over 2%. Loans to micro and small industries were the biggest disappointment, which just managed to report a 0.1% growth.
- In case of banking the rate of the levy has gone up from 15% to 18%.
via GST Rollout: Banks see credit growth for SMEs & self-employed after GST rollout – The Economic Times
aniltikotekar4sme.com 