Bank Credit Sectoral Deployment February Data Suggests Sustained Uptick: ICICI Securities
A cashier counts Indian one hundred-rupee banknotes at an Oriental Bank of Commerce branch in New Delhi, India. (Photographer: Prashanth Vishwanathan/Bloomberg)

Bank Credit Sectoral Deployment February Data Suggests Sustained Uptick: ICICI Securities

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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:

ICICI Securities Banking Credit Sector deployment Feb21.pdf

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