Indian Banking Sector - PVBs Catapulted To Expand Their Margins: Systematix

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..The evolutionary phase of banking system loan pricing mechanism (external benchmark linked lending rate, EBLR) progresses on the right trajectory enabling greater transparency. The RBI’s latest data prints on banks’ loan pricing on external benchmarks (Repo rate, MIBOR, OIS, T-bills and other yardsticks) indicate that higher proportion of loans were priced on above market-linked reference rates or RBI’s policy rate.Of the total outstanding floating rates loans, 39.2% of the loans are priced on external benchmarks on Dec’21 (as compared to 28.5% on March’21). Proportion of loans priced on MCLR (marginal cost of funds-based lending rate) and Base rate further reduced to 53.1% & 5.3% on December 21 respectively (from 62.9% & 6.5% on March’21). The RBI’s datapoint doesn’t reveal incremental change in banking system’s loans bifurcation between fixed & floating rates loans. The loan bifurcation was at 74.9% / 23.4% on March’21 (from 74.2% / 24.2% on March’20)..Click on the attachment to read the full report:.DISCLAIMERThis 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.

Indian Banking Sector - PVBs Catapulted To Expand Their Margins: Systematix

Indian Banking Sector - PVBs Catapulted To Expand Their Margins: Systematix

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