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HDFC Securities: Banking Sector Credit Trends - Slowing, As Expected 

HDFC Securities: Banking Sector Credit Trends - Slowing, As Expected

A shopkeeper counts cash in a shop in India. (Photographer: Anindito Mukherjee/Bloomberg)
A shopkeeper counts cash in a shop in India. (Photographer: Anindito Mukherjee/Bloomberg)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

HDFC Securities Report

Non-food credit growth slowed to 6% YoY, the slowest rate in the last three years. All segments saw lower YoY growth versus July.

We do not find this surprising as disbursals by banks are likely to have been muted while repayments have gradually improved.

We believe that a further reduction in non-food credit growth is inevitable.

Muted disbursal trends and an increase in repayment rates from current levels after the completion of the moratorium is likely to limit growth.

Click on the attachment to read the full report:

HDFC Securities Banks - Sectoral Deployment - Oct20 .pdf

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