Banks report robust pick up in credit – The Hindu BusinessLine

Clipped from: https://www.thehindubusinessline.com/todays-paper/tp-news/banks-report-robust-pick-up-in-credit/article65212678.ece

Crisil estimates that gross bank credit in FY22 will grow by 9-10 per cent against 5 per cent in FY21

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 Rs. 79,149 crore in the fortnight ended February 25, and Rs. 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 Rs. 91,145 crore in the fortnight ended February 25 against Rs. 94,142 crore in the preceding fortnight.

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