Credit demand on the way up but still below pre-Covid levels

Credit demand on the way up but still below pre-Covid levels

Credit demand has improved further in December quarter as companies and individuals inched towards normalcy post Covid 19. Pre results quarterly numbers released by banks and NBFCs show that credit demand is has improved to the highest in this fiscal, though it is still at a lesser rate than the previous year.

Consumer lending company Bajaj Finance said the company acquired 2.2 million new customers in the third quarter though lower than the 2.5 million acquired in the smae period last year. New loans booked during the quarter stood at 6 million compared to 7.7 million a year earlier.

As a result the company’s assets under management (AUM) improved to Rs 1.43 lakh crore as of 31 December 2020 up from Rs 1.37 lakh crore in September 2020 but lower than the Rs 1.45 lakh crore reported a year earlier.

The company maintained its strong liquidity position with a surplus of Rs 14,600 crore as of December 2020. Its total deposits increased to Rs 23,800 crore from Rs 20,235 crore in December 2019.

Housing financier HDFC said individual loan disbursements improved to 86% of the levels as compared to previous year.

Growth in the individual loan disbursement for in the third quarter stood at 26% compared to a year ago period. Loan disbursements have grown steadily from 11% in September 2020 to 35% in October 2020 and 26% overall in the third quarter, the company said.

IndusInd Bank said its total advances had recovered to pre Covid levels at Rs 2.07 lakh crore and higher than Rs 2.01 lakh crore reported in September 2020. Total deposits have continued to rise increasing 11% year on year to Rs 2.39 lakh crore from Rs 2.16 lakh crore a year earlier. However, the bank’s current and savings account (CASA) declined to 40.50% in December 2020 from 42.40% a year earlier, though higher than the 40.40% reported in September 2020.

Source link


Please enter your comment!
Please enter your name here