Afternoon D & C Dedicated To Mumbai
Home > Business & Investment > NBFCs push credit demand by 14.4% to a 5-year high

NBFCs push credit demand by 14.4% to a 5-year high

Monday, November 12, 2018

Despite the overall increase in lending rates, for first time in over five years, bank credit rose by a healthy 14.41% during the fortnight to October 26, the Reserve Bank has said. This growth is at a five-year high, after the 16.6% achieved by the system in October 2013 and the data come amid reports of an increase in demand from the troubled non- bank finance companies (NBFCs) from banks. NBFCs are facing liquidity pressure and has around Rs 60,000 crore worth repayments between November 1 and 9. They another Rs 90,000 crore repayments by the end of the month, of Rs 70000 crore are commercial paper redemption.

Provisional figures released by the central bank showed the overall bank credit increased 14.41% to Rs 93.01 trillion as of October 26 from Rs 81.29 trillion in the year ago period. Bank credit grew 4.45% for the fortnight to October 12, the data show. According to reports, NBFCs are finding it difficult to secure short term funding from the money markets and are increasingly looking up to banks for their liabilities. Money markets have been impacted following the defaults by IL&FS.

Apart from that, analysts say liquidity problems at NBFCs offer an opportunity for the banks for recoup their market shares by lending directly to the segments served by the shadow banks.

A host of banks, starting with the largest lender SBI, have shown greater confidence on credit growth for the ongoing fiscal year in recent management commentary. The systems deposit growth came in at 8.83% to Rs 120.71 trillion, which however is marginally down from previous fortnight of on October 12, when it had stood at Rs 120.87 trillion, the RBI said.

No Comments Posted
City news
CB sleuths use human intelligence to arrest 4 ...
The Shiv Sena Monday said the RSS' and ...
At least five dogs lodged at a care ...
I am a 33-year-old married man. Can you tell me w
Dr. Rajan B. Bhonsle, M.D. (Bom)
Consulting Sex Therapist & Counsellor
Dr. (Mrs.) Minnu R. Bhonsle, Ph.D.
Consulting Psychotherapist & Counsellor
Select Sun sign:
Aries (Mar 21 - Apr 20)
Aries (Mar 21 - Apr 20)Life sometimes smiles down upon you, and today seems to be such a day. Though you will remain occupied with your work, there will be no pressure. Same is the case with your personal life. What more does one need? Ganesha is probably trying to teach you to be content. Extravagance of any kind will cause you money problems. Be particularly careful about this.
- Advertising -
Autistic children, the ultimate square pegs in ro
On the eve of Children’s Day, Swati Bhushan offer
Incorporate fitness into your routine with kids s
Read More