Bank Credit Sectoral Deployment February Data Suggests Sustained Uptick: ICICI Securities
BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Securities Report
Bank credit sectoral deployment data for February 2021 suggests sustained month-on-month uptick in non-food credit of 0.9% (after 2.2% accretion during April-January).
This is now settling at 3.1% year-to-date/6.5% YoY growth to Rs 94.9 trillion.
Year-to-date trend suggests FY21 credit growth will settle upwards of 5% (considering ~2-3% accretion is witnessed in March, historically).
Key trends include -
1. Industry credit is still lagging with year-to-date decline of 4.1% (down 0.2% YoY). Besides private corporates, government non-financial entities and local/quasi government entities have exhibited run-down in credit (during April-December 2020).
2. Service segment credit (led by lending to NBFCs and financial services) is now gathering pace - up 2.5% YTD/9.3% YoY.
Click on the attachment to read the full report:
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.