Retail and MSMEs top borrowers of private banks Mumbai, 6 Jan (KNN) According to the third quarter reports of private banks, the disburse...
Retail and MSMEs top borrowers of private banks
Mumbai, 6 Jan (KNN) According to the third quarter reports of private banks, the disbursement saw a double digit growth by December 2021 showing sustained demand from MSMEs and retail sector.
According to analysts, the growth of loan is believed to be supported by the festive seasonal demand and economic recovery, however the demand in the corporate sector remains low.
The experts have also said that the omicron variant and the third wave will have a minimal impact on loan demand.
The Senior Group Vice President and Head of BFSI Research, Institutional Equities, Motilal Oswal Financial Services, Nitin Aggarwal said that banks are reporting even stronger traction which is driven by continued traction in retail, both secured and unsecured segments; revival in business banking, and SME segments.
As per RBI data, credit to commercial sectors by banks increased by 7.3 per cent by 17th December, 2021 against that of 5.7 per cent growth last year.
The outlook for bank credit growth is expected to be in range of 8-9 per cent for 2021-2022, as per a recent report by CareEdge.
