GET Stock QuotesNews18 APP
News18 English
»
1-min read

Credit Deployment Still Negative in Most Sectors: Assocham

Following a study of Reserve Bank data, Assocham noted how sector after sector, including sugar, petroleum, coal, petrochemicals, cement, basic metals and metal products have shown a drop in deployment of gross bank credit between minus two per cent and 19 per cent in fiscal 2017-18.

IANS

Updated:April 29, 2018, 11:53 PM IST
facebookTwittergoogleskypewhatsapp
Credit Deployment Still Negative in Most Sectors: Assocham
Assocham logo. (Image for representation only)
Loading...
New Delhi: Most Indian industry sectors have reported negative growth in deployment of gross bank credit, a fallout of banks' inability to lend being saddled with mammoth non-performing assets (NPA), or bad loans, coupled with lack of appetite for fresh investment by highly indebted corporate India, industry body Assocham said on Sunday.

Following a study of Reserve Bank of India (RBI) data, Assocham noted how sector after sector, including sugar, petroleum, coal, petrochemicals, cement, basic metals and metal products have shown a drop in deployment of gross bank credit between minus two per cent and 19 per cent in fiscal 2017-18.

"The problem of twin balance sheets is very much reflected in the RBI data of credit deployment. While the banks are struggling with their rising NPAs and huge requirements of provisioning that goes with the same, corporate India is still reeling under high leverage in sectors like roads, power, telecommunication and others," said Assocham Secretary General D.S. Rawat said in a statement here.

The fertiliser sector has shown a huge fall in credit deployment to the extent of 19.3 per cent up to February 16, on sequential basis in the last fiscal, the statement said.

Petrochemicals firms also showed a huge negative growth of over 19 per cent in credit deployment up to February 16, while key infrastructure like road, power and telecommunication, also showed a negative trend between 1.6 per cent and six per cent.

"But a large part of the industry is still not out of the woods, if the credit deployment is any indication," Assocham said, and that it would still take a few more quarters before things look up.

"There needs to be a sense of urgency in repairing the balance sheets of the PSU banks. The Rs 2 lakh crore capial infusion, as announced by the government must be speeded up, even as the lenders wait impatiently from some cash accruing back as a result of successful resolution plans under the Insolvency process," it added.
| Edited by: Bijaya Das
Read full article
Loading...
Next Story
Next Story

Also Watch

facebookTwittergoogleskypewhatsapp
Most Active
Company Price Change %Gain
Reliance 1,101.30 -4.34
Indiabulls Hsg 653.80 -17.10
Dewan Housing 210.55 -10.75
Yes Bank 217.90 -6.04
Bajaj Finance 2,140.50 -0.47
Company Price Change %Gain
Sudarshan Chem 385.05 2.64
Indiabulls Hsg 654.25 -17.06
Reliance 1,101.65 -4.11
Dewan Housing 211.80 -10.37
Yes Bank 217.70 -6.06
Top Gainers
Company Price Change %Gain
HPCL 215.90 4.15
Sun Pharma 609.95 2.78
Kotak Mahindra 1,198.95 1.95
Bharti Infratel 264.45 1.71
Vedanta 211.10 1.51
Company Price Change %Gain
Sun Pharma 608.40 2.52
Kotak Mahindra 1,199.55 1.83
Vedanta 211.15 1.51
HUL 1,579.20 1.16
ITC 288.45 0.73
Top Losers
Company Price Change %Gain
Indiabulls Hsg 653.80 -17.10
HCL Tech 958.50 -6.42
Yes Bank 217.90 -6.04
HDFC 1,660.25 -4.46
Reliance 1,101.30 -4.34
Company Price Change %Gain
Yes Bank 217.70 -6.06
HDFC 1,661.30 -4.32
Reliance 1,101.65 -4.11
Hero Motocorp 2,711.00 -3.70
Infosys 682.60 -3.11

Live TV

Loading...
Loading...