Bank Credit: November Sectoral Deployment Shows Some Encouraging Trends, Says ICICI Securities
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ICICI Securities Report
The Reserve Bank of India has released bank credit sectoral deployment data for November 2020 wherein non-food credit after rising 0.6% month-on-month now stands flat year-to-date at Rs 92 trillion (6% YoY growth) with steadily improving collection trends (repayments/prepayments) offsetting the increased momentum in disbursement.
A few encouraging trends during the month -
1. downward trajectory in industry credit (particularly large industries) was arrested and, after six consecutive months of decline, there was marginal uptick in Nov-20;
2. with the economy opening up, transport operators, tourism / hotels / restaurants, commercial real estate, etc. witnessed month-on-month 3-6% uptick in credit.
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