Banks gear up for a festival boost to loan, profit growth
August 16, 2022
“The festive season is expected to be reasonably strong for retail lending, which coupled with asset repricing should support margins/core-profitability,” mentioned Anand Dama, banking analyst at.
“Most banks have raised their growth guidance for FY23, factoring in a strong June quarter and improving growth impulses in retail, SME, and corporate portfolio. Within retail, mortgage growth remains healthy, while signs of pick-up are visible in otherwise lacklustre vehicle finance as well. Unsecured loan growth remains strong, led by cards and PL (personal loans), given underlying strong demand and banks turning pro-risk, given improving asset quality,” Dama mentioned.
As per the most recent information launched by the Reserve, credit score growth continued its sturdy upward run with a 15.1% improve year-on-year, the quickest since April 2019, within the fortnight ended July 29.
The bulk of the growth has been pushed by retail loans dwelling loans and private whereas company demand can also be exhibiting indicators of revival.