|
Key Sector Data |
|
|
Agg |
Public Banks |
Private Bank |
|
M-Cap (Rs 000 crore) |
4587 |
1332 |
3255 |
|
M-Cap (US$ Bn) |
553 |
161 |
393 |
|
P/E (ttm) |
16.2 |
10.1 |
21.5 |
|
P/BV (times) |
2.2 |
1.5 |
2.8 |
|
ROA (%) (ttm) |
1.1 |
0.9 |
1.5 |
|
ROE (%) (ttm) |
13.8 |
14.8 |
13.0 |
|
GNPA (%) |
3.3 |
4.2 |
2.1 |
|
NNPA (%) |
0.8 |
1.0 |
0.5 |
|
CRAR (%) |
19.9 |
16.0 |
19.5 |
|
Loan growth (%) |
19.4 |
13.2 |
29.0 | |
 | The Scheduled commercial banks (SCBs) credit growth has remained strong and steady on sequential basis at 20.2% YoY to Rs 15805276 crore as on 15 December 2023, compared with 20.6% growth a fortnight ago. The credit growth has improved from 14.9% at end December 2022.
Non-food credit, accounting for 99.7% of the share of the total credit, recorded a growth of 20.3%, YoY, at Rs 15762777 crore as on 15 December 2023 as against a rise of 20.8% fortnight ago and 15.3% rise a year ago. Food credit dipped 22.1% to Rs 42499 crore as on 15 December 2023.
The overall credit-deposit ratio rose on sequential basis to 79.9% as on 15 December 2023 from 79.5% a fortnight ago, while jumped from 75.0% in December 2022 with the faster growth in advances.
Sectoral deployment of bank credit
As per the data on sectoral deployment of bank credit as released by the Reserve Bank of India (RBI), non-food bank credit increased 20.8% in November 2023 over a year ago, showing acceleration in growth compared with 16.4% increase in November 2022. The credit to agriculture increased at improved pace of 18.2% in November 2023, showing acceleration from 14.0% growth in November 2022. Meanwhile, the credit growth to the industry rose 6.6% in November 2023 compared with 13.0% growth in November 2022. Within the industrial segment, the advances to large industry rose 3.6%, while credit to medium industry moved up 12.0% in November 2023. The credit for the micro and small industry increased 17.2% compared with 19.5% growth in November 2022.
Credit growth to the services sector has accelerated to 25.4% in November 2023 compared with an increase of 21.3% in November 2022, driven by acceleration in credit growth for commercial real estate at 37.5%, other services 36.2%, wholesale trade (other than food procurement) 21.0%, transport operators 24.4% and aviation 65.4%, while credit growth has also improved for professional services to 21.1% and tourism, hotels and restaurants 12.9%. However, the services credit growth for NBFCs decelerated to 21.5%, retail trade 17.1% and computer software 9.3%, while the credit to shipping declined10.8% in November 2023.
Personal loans increased at an accelerated pace of 30.1% in November 2023 as against an increase of 19.9% in November 2022. Among the major segments of personal loans, the credit for housing increased at improved pace of 37.0%, other personal loans 24.3%, credit card outstanding 34.2%, education 22.8%, and loans against gold jewellery 18.5%. However, the credit growth has moderated for advances against fixed deposits to 17.2%, consumer durables 10.8%, and vehicle loans 20.8% in November 2023 from November 2022.
Priority sector loans growth improved to 17.8% in November 2023 compared with a 15.7% growth in November 2022. Among priority sector loans, the credit growth for Micro & Small Enterprises improved to 23.2%, Agriculture & Allied Activities 17.6% and Housing 20.4%, while credit to Weaker Sections eased to 13.3%.
Industrial credit growth
Credit to the industrial sector accounting for 23.1% of the total banking sector credit increased 6.6% in November 2023 compared with a rise of 13.0% in November 2022. As per industry-wise classification, the segments showing negative credit growth were petroleum, coal & nuclear fuels at (-) 8.4%.
However, the credit growth has moderated for infrastructure (2.1% from 11.1%), other industries (2.5% from 22.2%), chemicals & chemical products (5.8% from 19.0%) and rubber, plastic & their products (7.6% from 18.3%). Further, the credit growth has also eased for mining & quarrying (incl. coal) (0.2% from 6.4%), all engineering (9.5% from 10.7%) and leather & leather products (4.4% from 5.5%).
On the other hand, the credit growth has accelerated for textiles (14.6% from 3.4%), gems & jewellery (18.0% from -0.1%), basic metal & metal product (17.7% from 15.3%), food processing (11.3% from 7.1%), construction (6.6% from 2.2%) and cement & cement products (16.7% from 10.7%). Further, the credit growth has also improved for vehicles, parts & transport equipment (10.5% from 7.3%), beverage & tobacco (33.6% from 25.0%), glass & glassware (36.2% from 14.7%), wood & wood products (20.5% from 17.5%) and paper & paper products (6.4% from 5.8%), end November 2023 over November 2022.
Aggregate deposits
Aggregate deposits growth of the scheduled banks increased 14.0% YoY at Rs 19791557 crore as on 15 December 2023, compared with 13.6% growth a fortnight ago and 9.2% rise a year ago. The time deposits showed an increase of 14.0% at Rs 17472053 crore, while the demand deposits increased 14.1% to Rs 2319503 crore as on 15 December 2023.
Investments of the banking sector
The banks investment in government and other approved securities that qualify for treatment of statutory liquidity ratio moved up 16.2% YoY to Rs 5959761 crore as on 15 December 2023, showing deceleration in growth from 19.3% increase a fortnight ago.
The investment-deposit ratio eased to 30.1% as on 15 December 2023 from 30.9% a fortnight ago, while jumped from 28.7% in December 2022. The investment-deposit ratio is much higher above the Statutory Liquidity Ratio of 18.0%.
Outlook
The banking loan growth is healthy across the segments. The recent hike in risk weights for unsecured consumer credit, credit cards receivables and non-priority NBFCs is likely to have some impact on credit growth ahead along with high base.The deposit growth has improved to 14.0% driven by term deposits. The low cost Casa deposits continue to be under pressure on account of high term deposit rates. The high terms deposit rates pressure on Casa deposits is likely to continue put pressure on net interest margins of the banking sector amid tightliquidity conditions.
The high operating expenses is causing some pressure for banking sector. However, the marginal decline in the g-sec yield in the quarter ended December 2023 would provide treasury gains and limit provision requirement for depreciation of investment book.
The asset quality and stressed asset level of the banking sector has continued improve with dip in fresh slippages of loans. The strong PCR levels and healthy contingency provision buffers have led to sharp decline in credit costs for banks. The fresh slippage of loans is likely to remain under control, despite some concerns for asset quality in the unsecured loan segment.
| Sectoral Deployment of Bank Credit |
| Sector |
Nov-22 |
Nov-23 |
Variation Over (%) |
| O/s Amount |
% Share |
O/s Amount |
% Share |
Fin. Year So Far |
Y-o-Y |
| 2022-23 |
2023-24 |
2022-23 |
2023-24 |
| Gross Bank Credit (A+B) |
129478.1 |
100.0 |
156205.5 |
100.0 |
8.9 |
14.2 |
16.0 |
20.6 |
| A. Food Credit |
522.4 |
0.4 |
402.6 |
0.3 |
-5.0 |
102.3 |
-36.6 |
-22.9 |
| B. Non-food Credit |
128955.7 |
99.6 |
155802.9 |
99.7 |
8.9 |
14.1 |
16.4 |
20.8 |
| a. Agriculture & Allied Activities |
16338.9 |
12.6 |
19312.2 |
12.4 |
9.1 |
11.8 |
14.0 |
18.2 |
| b. Industry |
33776.7 |
26.1 |
36008.8 |
23.1 |
4.4 |
5.4 |
13.0 |
6.6 |
| Micro & Small |
5884.0 |
4.5 |
6895.0 |
4.4 |
5.1 |
8.8 |
19.5 |
17.2 |
| Medium |
2532.9 |
2.0 |
2837.7 |
1.8 |
5.7 |
5.7 |
27.9 |
12.0 |
| Large |
25359.8 |
19.6 |
26276.0 |
16.8 |
4.1 |
4.5 |
10.3 |
3.6 |
| c. Services |
34004.8 |
26.3 |
42647.6 |
27.3 |
10.0 |
15.3 |
21.3 |
25.4 |
| d. Personal Loans |
38881.2 |
30.0 |
50565.2 |
32.4 |
12.5 |
20.9 |
19.9 |
30.1 |
| Housing (Incl. Priority Sector) |
18940.4 |
14.6 |
25941.1 |
16.6 |
9.7 |
30.5 |
16.6 |
37.0 |
| Vehicle Loans |
4677.1 |
3.6 |
5647.8 |
3.6 |
16.2 |
12.4 |
22.3 |
20.8 |
| Memo: |
0.0 |
|
0.0 |
|
|
|
|
|
| Priority Sector |
56854.2 |
43.9 |
66984.7 |
42.9 |
7.8 |
11.7 |
15.7 |
17.8 |
| Agriculture & Allied Activities |
16666.2 |
12.9 |
19604.1 |
12.6 |
9.8 |
12.3 |
15.5 |
17.6 |
| Micro & Small Enterprises |
15237.0 |
11.8 |
18764.9 |
12.0 |
6.6 |
14.0 |
16.2 |
23.2 |
| Housing |
6148.7 |
4.7 |
7403.2 |
4.7 |
-0.5 |
18.9 |
2.5 |
20.4 |
| Weaker Sections |
13506.0 |
10.4 |
15308.1 |
9.8 |
12.4 |
8.4 |
20.6 |
13.3 |
| Source: Reserve Bank of India, figure in Rs Billion |
| Sectoral Deployment of Industrial Credit |
| Sector |
Nov-22 |
Nov-23 |
Variation Over (%) |
| O/s Amount |
% Share |
O/s Amount |
% Share |
Financial Year So Far |
Y-o-Y |
| 2022-23 |
2023-24 |
2022-23 |
2023-24 |
| Mining & Quarrying (incl. Coal) |
544.48 |
1.6 |
545.64 |
1.5 |
6.5 |
-10.5 |
6.4 |
0.2 |
| Food Processing |
1620.97 |
4.8 |
1803.89 |
5.0 |
-8.2 |
-2.9 |
7.1 |
11.3 |
| Beverage & Tobacco |
205.69 |
0.6 |
274.87 |
0.8 |
10.1 |
14.6 |
25.0 |
33.6 |
| Textiles |
2197.97 |
6.5 |
2519.28 |
7.0 |
-5.1 |
6.6 |
3.4 |
14.6 |
| Leather & Leather Products |
117.28 |
0.3 |
122.39 |
0.3 |
-2.2 |
1.3 |
5.5 |
4.4 |
| Wood & Wood Products |
190.25 |
0.6 |
229.25 |
0.6 |
8.8 |
7.3 |
17.5 |
20.5 |
| Paper & Paper Products |
436.52 |
1.3 |
464.51 |
1.3 |
2.1 |
2.7 |
5.8 |
6.4 |
| Petroleum, Coal & Nuclear Fuels |
1487.59 |
4.4 |
1361.92 |
3.8 |
36.8 |
-9.2 |
63.4 |
-8.4 |
| Chemicals & Chemical Products |
2250.10 |
6.7 |
2380.82 |
6.6 |
9.9 |
5.7 |
19.0 |
5.8 |
| Rubber, Plastic & their Products |
815.73 |
2.4 |
877.57 |
2.4 |
5.7 |
3.8 |
18.3 |
7.6 |
| Glass & Glassware |
80.65 |
0.2 |
109.85 |
0.3 |
11.8 |
14.6 |
14.7 |
36.2 |
| Cement & Cement Products |
532.35 |
1.6 |
621.05 |
1.7 |
7.9 |
6.6 |
10.7 |
16.7 |
| Basic Metal & Metal Product |
3200.72 |
9.5 |
3767.57 |
10.5 |
8.0 |
7.0 |
15.3 |
17.7 |
| All Engineering |
1771.07 |
5.2 |
1939.16 |
5.4 |
1.3 |
6.3 |
10.7 |
9.5 |
| Vehicles, Parts & Transport Equip. |
999.48 |
3.0 |
1104.59 |
3.1 |
2.2 |
7.2 |
7.3 |
10.5 |
| Gems & Jewellery |
781.82 |
2.3 |
922.55 |
2.6 |
-7.4 |
13.6 |
-0.1 |
18.0 |
| Construction |
1232.28 |
3.6 |
1314.12 |
3.6 |
0.6 |
3.3 |
2.2 |
6.6 |
| Infrastructure |
12534.56 |
37.1 |
12803.68 |
35.6 |
4.0 |
5.6 |
11.1 |
2.1 |
| Other Industries |
2777.16 |
8.2 |
2846.03 |
7.9 |
8.4 |
16.3 |
22.2 |
2.5 |
| Industries |
33776.66 |
100.0 |
36008.76 |
100.0 |
4.4 |
5.4 |
13.0 |
6.6 |
| Source: Reserve Bank of India, figure in Rs Billion |
| Liabilities With schedule commercial banks (Rs. bn) |
|
Total
Deposits |
Demand
Deposits |
Time
Deposits |
Borrowings
from RBI |
Liabilities To
Banks |
Other
Demand &
Time Liabilities |
Other
Borrowings |
| Jan-22 |
160325 |
19122 |
141203 |
943 |
2666 |
6058 |
2716 |
| Feb-22 |
162175 |
19640 |
142536 |
961 |
2520 |
6383 |
2767 |
| Mar-22 |
164653 |
20727 |
143926 |
943 |
2586 |
6408 |
2746 |
| Apr-22 |
167816 |
21144 |
146671 |
943 |
2824 |
6641 |
2861 |
| May-22 |
165972 |
19853 |
146119 |
944 |
2776 |
6549 |
3933 |
| Jun-22 |
165921 |
19537 |
146384 |
945 |
2814 |
6404 |
3714 |
| Jul-22 |
169723 |
20420 |
149303 |
944 |
2733 |
6605 |
3536 |
| Aug-22 |
169939 |
20230 |
149709 |
983 |
2782 |
6622 |
4695 |
| Sep-22 |
175438 |
22340 |
153098 |
1125 |
2985 |
7257 |
4565 |
| Oct-22 |
172765 |
21221 |
151544 |
1159 |
2937 |
6869 |
5262 |
| Nov-22 |
173294 |
20790 |
152504 |
967 |
3188 |
6837 |
4954 |
| Dec-22 |
177338 |
22018 |
155320 |
1275 |
3263 |
7526 |
4404 |
| Jan-23 |
177194 |
21567 |
155627 |
1216 |
3262 |
7317 |
4598 |
| Feb-23 |
178619 |
21507 |
157111 |
1090 |
3448 |
7629 |
4665 |
| Mar-23 |
180439 |
21804 |
158635 |
1651 |
3518 |
7897 |
4453 |
| Apr-23 |
184829 |
22577 |
162252 |
730 |
3426 |
7988 |
4654 |
| May-23 |
184944 |
21827 |
163117 |
673 |
3648 |
7826 |
4567 |
| Jun-23 |
191560 |
24489 |
167071 |
509 |
3589 |
8249 |
4750 |
| Jul-23 |
191670 |
22580 |
169090 |
450 |
5065 |
8208 |
7843 |
| Aug-23 |
192410 |
22123 |
170286 |
933 |
5084 |
8907 |
8181 |
| Sep-23 |
197010 |
24088 |
172922 |
1703 |
5267 |
9307 |
7915 |
| Oct-23 |
195609 |
22932 |
172677 |
1607 |
5083 |
8689 |
8377 |
| 17-Nov-23 |
196519 |
23072 |
173447 |
1310 |
5002 |
8872 |
8425 |
| 15-Dec-23 |
197916 |
23195 |
174721 |
1558 |
5400 |
10327 |
7620 |
| Assets with Schedule commercial Banks (Rs. bn) |
|
Cash
in Hand |
Balance
with RBI |
Assets
with
Banking System |
Investments in Govt.
Securities |
Inv in Other
Securities |
Food Credit |
Loans |
Inland Bills
Purchased & Discounted |
Foreign Bills Purchased
& Discounted |
Non
Food
Credit |
Total
Bank
Credit |
| Jan-22 |
888 |
6813 |
2409 |
45794 |
12 |
824 |
112489 |
1706 |
494 |
113866 |
114690 |
| Feb-22 |
883 |
6645 |
2328 |
46690 |
12 |
682 |
114174 |
1793 |
471 |
115755 |
116437 |
| Mar-22 |
859 |
6834 |
2436 |
47282 |
8 |
550 |
116513 |
1903 |
497 |
118363 |
118913 |
| Apr-22 |
1009 |
7402 |
2731 |
48261 |
10 |
527 |
117622 |
1872 |
515 |
119482 |
120009 |
| May-22 |
979 |
7617 |
2785 |
48296 |
8 |
507 |
118272 |
1880 |
476 |
120121 |
120627 |
| Jun-22 |
1015 |
7765 |
2907 |
48864 |
8 |
409 |
119591 |
1817 |
497 |
121495 |
121904 |
| Jul-22 |
1085 |
8345 |
2769 |
50135 |
8 |
323 |
121264 |
1947 |
482 |
123370 |
123694 |
| Aug-22 |
1085 |
7641 |
2925 |
50665 |
8 |
278 |
122210 |
1912 |
465 |
124309 |
124587 |
| Sep-22 |
1087 |
8449 |
3068 |
50699 |
8 |
192 |
127834 |
2019 |
471 |
130133 |
130325 |
| Oct-22 |
1138 |
7818 |
3018 |
50651 |
8 |
320 |
126272 |
1918 |
458 |
128327 |
128647 |
| Nov-22 |
1065 |
8088 |
3171 |
50714 |
8 |
547 |
127711 |
1877 |
435 |
129476 |
130023 |
| Dec-22 |
986 |
8416 |
3165 |
50952 |
9 |
540 |
130683 |
1923 |
463 |
132529 |
133069 |
| Jan-23 |
1104 |
8136 |
3148 |
51938 |
9 |
502 |
131065 |
1859 |
451 |
132874 |
133375 |
| Feb-23 |
972 |
7980 |
3230 |
53367 |
8 |
353 |
132121 |
1934 |
448 |
134150 |
134503 |
| Mar-23 |
903 |
8099 |
3266 |
54143 |
8 |
199 |
134249 |
2023 |
480 |
136553 |
136752 |
| Apr-23 |
901 |
8904 |
3381 |
54582 |
7 |
277 |
136200 |
2103 |
490 |
138516 |
138793 |
| May-23 |
1186 |
8522 |
3310 |
55428 |
8 |
336 |
136460 |
2125 |
439 |
138689 |
139025 |
| Jun-23 |
1139 |
8712 |
3354 |
56699 |
8 |
279 |
141209 |
2178 |
450 |
143558 |
143837 |
| Jul-23 |
969 |
8993 |
3499 |
58386 |
8 |
208 |
145280 |
2157 |
435 |
147663 |
147871 |
| Aug-23 |
931 |
10104 |
3472 |
59008 |
8 |
194 |
146627 |
2131 |
416 |
148980 |
149173 |
| Sep-23 |
950 |
9692 |
3755 |
60282 |
7 |
187 |
150537 |
2289 |
410 |
153050 |
153237 |
| Oct-23 |
961 |
9070 |
3532 |
60234 |
7 |
208 |
152201 |
2293 |
389 |
154675 |
154883 |
| 17-Nov-23 |
889 |
9108 |
3590 |
60690 |
8 |
403 |
153507 |
2321 |
381 |
155805 |
156208 |
| 15-Dec-23 |
844 |
9364 |
3719 |
59598 |
8 |
425 |
155318 |
2355 |
380 |
157628 |
158053 |
|