SBI Research: August Credit Data Portends Trouble

"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..SBI Research Report.Incremental bank credit growth lost much of the momentum in August 2020.The bad thing is that incremental bank credit that increased in June and July by Rs 392 billion declined in August by Rs 360 billion, which is mainly due to decline in credit to personal loan and infrastructure segments.Credit to non-banking financial companies, however, jumped in August after three successive months of decline.Simultaneously, our bottom up approach suggests that deposit and credit growth (extrapolated on the basis of sum of daily variations) during the current unlock four regime witnessed large declines, with the maximum decline in savings bank deposits and even bank deposits happening in unlock four across all lockdowns and unlock phases.The consumer deleverage also declined in August indicating the stess of household balance sheets now emerging with gusto..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 brokerage 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."

SBI Research: August Credit Data Portends Trouble