Commercial Lending Up 11% in Sept Qtr: Report
By Rediff Money Desk, MUMBAI Feb 28, 2024 18:46
Commercial credit portfolio grew 11% in Sept quarter, delinquency rate dropped to 2-year low, driven by increased economic activity. Lenders see promising growth prospects.
Mumbai, Feb 28 (PTI) The overall commercial credit portfolio grew 11 per cent in the September quarter to Rs 28.2 lakh crore, a credit information company said on Wednesday.
The delinquency rate at the end of September quarter dropped to the lowest in the last two years, as per the quarterly report by Sidbi and Transunion Cibil.
It attributed the increased economic activity for the higher pick-up for loans by the commercial sector, and added that the demand for commercial loans grew 29 per cent during the quarter over the same period last year, which indicates improved lender confidence.
Sidbi's Chairman and Managing Director Sivasubramanian Ramann said the lending growth happened despite the conclusion of the Emergency Credit Line Guarantee Scheme (ECLGS) scheme, which indicates the underlying growth momentum of the sector.
Cibil's Managing Director and Chief Executive Rajesh Kumar said lenders can look at expanding their exposures to the micro, small and medium enterprises now on the back of promising economic growth prospects reflected through strong demand, stable portfolio growth and improved credit performance.
The overall balance-level delinquencies, measured as 90 days-past-due to 720 days-past-due and those reported as 'sub-standard', have improved to 2.3 per cent as of end-September from 3 per cent in the year-ago period, the report said.
The medium enterprises segment, where the exposures are in the range of Rs 10-50 crore, saw a degrowth in both value and volume terms, while both micro and small enterprises reported an uptick.
The manufacturing sector accounts for 37 per cent of the value originated and has the largest share, followed by the trade sector at 28 per cent share, the report said, adding that the professional services and other sectors together account for the remaining 35 per cent share.
The delinquency rate at the end of September quarter dropped to the lowest in the last two years, as per the quarterly report by Sidbi and Transunion Cibil.
It attributed the increased economic activity for the higher pick-up for loans by the commercial sector, and added that the demand for commercial loans grew 29 per cent during the quarter over the same period last year, which indicates improved lender confidence.
Sidbi's Chairman and Managing Director Sivasubramanian Ramann said the lending growth happened despite the conclusion of the Emergency Credit Line Guarantee Scheme (ECLGS) scheme, which indicates the underlying growth momentum of the sector.
Cibil's Managing Director and Chief Executive Rajesh Kumar said lenders can look at expanding their exposures to the micro, small and medium enterprises now on the back of promising economic growth prospects reflected through strong demand, stable portfolio growth and improved credit performance.
The overall balance-level delinquencies, measured as 90 days-past-due to 720 days-past-due and those reported as 'sub-standard', have improved to 2.3 per cent as of end-September from 3 per cent in the year-ago period, the report said.
The medium enterprises segment, where the exposures are in the range of Rs 10-50 crore, saw a degrowth in both value and volume terms, while both micro and small enterprises reported an uptick.
The manufacturing sector accounts for 37 per cent of the value originated and has the largest share, followed by the trade sector at 28 per cent share, the report said, adding that the professional services and other sectors together account for the remaining 35 per cent share.
Read More On:
DISCLAIMER - This article is from a syndicated feed. The original source is responsible for accuracy, views & content ownership. Views expressed may not reflect those of rediff.com India Limited.
TODAY'S MOST TRADED COMPANIES
- Company Name
- Price
- Volume
- Vodafone Idea L
- 17.90 ( -3.35)
- 166585989
- Alstone Textiles
- 0.75 (+ 8.70)
- 47681821
- GTL Infrastructure
- 3.27 (+ 4.81)
- 44040612
- Visagar Financial
- 0.91 (+ 12.35)
- 29755394
- YES Bank Ltd.
- 23.70 (+ 0.77)
- 22163699
MORE NEWS
![Indian Economy...](https://im.rediff.com/80-80/money/2020/nov/22economy.jpg)
Indian Economy Growth: Exports, Manufacturing &...
Mumbai, June 30 (PTI) Healthy increase in the country's exports, improvement in the...
![India Launches...](https://im.rediff.com/80-80/news/2020/jul/imports-o.jpg)
India Launches Anti-Dumping Probe on Glass...
New Delhi, June 30 (PTI) India has initiated an anti-dumping probe into the import of...
![IBBI Launches...](https://im.rediff.com/80-80/money/2020/dec/16insolvency.jpg)
IBBI Launches Electronic Forms for Liquidation...
New Delhi, Jun 30 (PTI) To ease the compliance burden for insolvency professionals, and...