Bvr, Bank

New Delhi, Jan 17 Bank credit to manufacturing sector has remained muted in the current financial year amid the pandemic, while few sectors, including construction and trade, have witnessed resilient flows.According to the Financial Stability Report of the Reserve Bank of India for January, credit growth in the manufacturing sector in October 2020 contracted by 2 per cent, while that in construction witnessed a growth of 5.1 per cent and credit to trade, hotels and restaurants was up 13.9 per cent."An analysis of sectoral credit growth, specifically to those that are critical in terms of gross value added (GVA), shows resilient flows to sectors such as construction, trade and hospitality, while bank credit remained muted to the manufacturing sector," the report said.It said that the profile of wholesale credit in first half of 2020-21 and in the third quarter of 2020-21 (upto November) reflects a subdued credit situation across bank groups, pointing to risk aversion and muted demand weighing on the outlook.With the onset of Covid-19, retail credit growth (y-o-y) has suffered, while wholesale credit growth has held up though at low levels."With stress tests pointing to a deterioration in asset quality of banks, early identification of impairment and aggressive capitalisation is imperative for supporting credit growth across various sectors alongside pre-emptive strategies for dealing with potential NPAs," it said.As per the report, the gross non-performing asset (GNPA) of scheduled commercial banks (SCB) are likely to increase to 13.5 per cent by September 2021 in the existing scenario.In case of a severe stress, the ratio may go up to as high as 14.8 per cent, it said.( With inputs from IANS )Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor

BvrFOLLOW

Bvr, Latest News

Standard Chartered Bank has been constantly innovating while building out technical capabilities and remaining agile in its ways of working. This has aided the Bank in providing efficient and seamless banking services to all its clients especially th ...

lnduslnd International Holdings Ltd (IIHL), the promoter company of lnduslnd Bank, has completed its capital raise through a rights issue at an overwhelming premium of 1,400 per cent towards subscription. ...

New Delhi, Feb 9 Bank unions on Tuesday called for a two-day strike starting March 15, against the ... ...

Mumbai, Jan 25 Kotak Mahindra Bank on Monday reported a 10.76 per cent increase in its consolidated net profit ... ...

On the occasion of 50th statehood of Manipur on Thursday, Chief Minister N. Biren Singh proudly announced that Manipur had been positioned in the top three among the Northeast and the hilly states in India Innovative Index 2020 which was released by ...

On the occasion of 50th statehood of Manipur on Thursday, Chief Minister N. Biren Singh proudly announced that Manipur had been positioned in the top three among the Northeast and the hilly states in India Innovative Index 2020 which was released by ...

The Delhi High Court on Monday directed the administrators of Punjab and Maharashtra Co-operation (PMC) Bank to decide afresh about the applications of depositors seeking money for the medical and educational emergencies. ...

New Delhi, Jan 17 Bank credit to manufacturing sector has remained muted in the current financial year amid the ... ...