LIVE MARKET TRACKER :   BSE SENSEX   31599.76      |    NSE NIFTY 9871.50    
GLOBAL MARKETS :  NASDAQ 6370.5898   -0.8765%    |    FSI London 7302.50   +0.02%    |    NIKKEI Japan 20330.19   -0.33%
  USD GBP EUR CAD AUD INR
USD - 0.7444 0.8485 1.2377 1.2675 65.6100
GBP 1.3434 - 1.1396 1.6626 1.7025 88.1346
EUR 1.1789 0.8776 - 1.4592 1.4940 77.3161
CAD 0.8082 0.6022 0.6855 - 1.0245 53.0080
AUD 0.7891 0.5875 0.6695 0.9767 - 51.7590
INR 0.0153 0.0114 0.0129 0.0189 0.0194 -
Indian-Commodity  :  Economy  :  Link between bank credit and economic growth weakening: SS Mundra

Link between bank credit and economic growth weakening: SS Mundra (29-Sep-2016)

Raising concerns over the weak credit growth, Reserve Bank of India (RBI) Deputy Governor S S Mundra has said that the correlation between economic growth and banks' credit expansion is becoming weak due to proliferation of other institutions, and lenders will have to make a slew of changes to recover their share. Banks recorded a multi-decade low in credit growth last fiscal, not even breaking into double digits, while the GDP rose 7.6 percent.

RBI deputy governor further said that the relationship has weakened over years as banks have started accommodating companies through other sources like commercial paper (CP) and bonds.  He added that share of non-bank sources like NBFCs, housing finance companies and CPs has increased to 38.6 percent in March 2016 as compared to  35.2 percent in March 2014. The total credit distributed by the non-bank entities has increased to 37.40 percent in these two years, which is twice the pace of the 19.22 percent growth reported by banks. 

He said that a stable multiplier of real economic growth and bank credit may emerge only in the medium term, once the banks overcome a slew of weaknesses such as asset quality stress, revival in private sector investments and when inflation starts trending lower, which will lead to lower lending rates and push loan demand. Though, Mundra also added that banks will continue to remain the mainstay of finance for the economy.


Top News Today
Jaiprakash Associates gets nod to raise up to Rs 2,000 crore
(26-Sep-2017)

Jaiprakash Associates gets nod to raise up to Rs 2,000 croreJaiprakash Associates has received its shareholders' approval to raise up to Rs 2,000 crore through sale of securities. The special resolution was approved by the shareholders at the company's annual general......click on news to read complete article.

Panacea Biotec planning to raise Rs 250 crore
(26-Sep-2017)

Panacea Biotec planning to raise Rs 250 crorePanacea Biotec is planning to raise Rs 250 crore by way of issue of equity shares and/or other securities. In this regards, the company is conducting Postal Ballot for obtaining approval of members for......click on news to read complete article.

Novartis India gets nod for Rs 231.15 crore buyback plan
(26-Sep-2017)

Novartis India gets nod for Rs 231.15 crore buyback planNovartis India has received an approval for buyback of up to 34.5 lakh shares, accounting for about 12.26% of the existing paid up capital of the company, for up to Rs 231.15 crore. The company's board......click on news to read complete article.

International Stock News
Asian markets trade mostly lower in early deals on Tuesday
(26-Sep-2017)

Asian markets trade mostly lower in early deals on TuesdayMost of the Asian equity benchmarks are trading down in the early deals on Tuesday, following declines on Wall Street overnight, as the war of words between North Korea and the US escalated. Meanwhile,......click on news to read complete article.

US markets closed lower on North Korea's threat
(26-Sep-2017)

US markets closed lower on North KoreaThe US markets closed lower on Monday, on the back of a fresh flare up in tensions between the US and North Korea and a sharp decline in technology shares. North Korean foreign minister Ri Yong Ho, speaking......click on news to read complete article.

Asian markets trade mostly lower in early deals on Monday
(25-Sep-2017)

Asian markets trade mostly lower in early deals on MondayMost of the Asian equity benchmarks are trading down in the early deals on Monday, following the lackluster cues from Wall Street and concerns about China's economy. Investors digested election results......click on news to read complete article.

 

     
  
Recent Economy News
 
EquityInvestmentCompany ReportsIPO
Disclaimer
By clicking on this page you accept all the terms and conditions framed by us. News made available here are for informational purpose only. While utmost care has been taken in providing the same. We claim no responsibility for its accuracy. Readers of this blog who make their decision based on the information posted here are solely responsible for their actions.