Banking Sector Update - Bank credit growth robust for Q1; up 3.5% YTD vs. run-down in pre-covid years By ICICI Securities
![](https://portfolio.investmentguruindia.com/investmentguruimages/upload/post/2022/07/688a5027e6614c0b514fabad3eda12b4.jpg)
Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel
https://t.me/InvestmentGuruIndiacom
Download Telegram App before Joining the Channel
Bank credit growth robust for Q1; up 3.5% YTD vs. run-down in pre-covid years
Non-food bank credit for the fortnight ended 1st Jul’22 spiked 2% FoF (vs 17th Jun’22), up 15% YoY. Since Mar’22, growth has been >3.5% YTD. Bank credit sectoral deployment data for May’22 suggests YoY uptick across verticals: >16% in retail credit, 13% in services, 12% in agri, and >9% in industry. Incremental bank credit accretion in the past 12 months was Rs12.47trn, of which 49% was contributed by three components: housing (17%), MSME (17%), NBFC (15%). We believe India Inc, after undergoing a phase of deleveraging over the past few years, is now better positioned to embark on releveraging. Recovery in economic activity, derivative effect of increased investments and consumption may sustain the growth momentum of >12% CAGR over FY22-FY25E.
* We can expect the same to reflect in banks’ QoQ growth for Q1FY23E. Leading banks, whose business updates are not yet disclosed, may see 4-6% QoQ growth.
* FY23 YTD has been an exceptional year where credit has grown more than 3.5% in the first quarter itself vs run-down of 2-3% during Q1 in the pre-covid years. Historically, this kind of traction was visible in Q1FY11 (>4.5%) when system-wide growth for FY11 ended at >20%.
* Similarly, deposits too have grown 2.4% FoF registering 9.8% YoY growth.
To Read Complete Report & Disclaimer Click Here
For More ICICI Securities Disclaimer https://www.icicisecurities.com/AboutUs.aspx?About=7
SEBI Registration Number INZ000183631
Above views are of the author and not of the website kindly read disclaimer
![](https://portfolio.investmentguruindia.com/uploads/news/Agricultuer_15Feb.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/Dollar Rupee 100.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/Nirmalbgt23.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/Energy 2.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/NirmalaB.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/Narendra Modi 117.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/FDI_12.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/HDFC Securities.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/Pharma_Lab.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/202407233191624.jpeg)
Tag News
![](https://portfolio.investmentguruindia.com/investmentguruimages/upload/post/2023/09/d8d70c9557b23fd24047557efb331d4e.jpg)
AU Small Finance Bank jumps on entering into bancassurance tie-ups with Star Health and Baja...
More News
![](https://portfolio.investmentguruindia.com/investmentguruimages/upload/post/2023/07/0de748d81519cfb51c5d627072a4cb27.jpg)
Automobile Sector Report Update : Auto retails: Sailing through seasonally weak months By IC...
![Metals and Mining Sector Update - 3Q margins to expand; steel import parity suggests strong pricing support By JM Financial Institutional Securities](https://portfolio.investmentguruindia.com/investmentguruimages/upload/post/2022/12/22cad7b10a80b029529b487fff482f9d.jpg)
![Cement Sector Update - Demand has improved, but pricing remains muted By Motilal Oswal](https://portfolio.investmentguruindia.com/investmentguruimages/upload/post/2021/02/883356cdfa0b21009d41be45bf94ea26.jpg)
![Oil and Gas Sector Update - Petrol cracks boost GRM to 14-month high, but diesel weak By ICICI Securities](https://portfolio.investmentguruindia.com/investmentguruimages/upload/post/2021/04/c6a3d4426471f80dbb23be91bede7584.jpg)