1.2L Cr Till Aug End
period, while loans to consumer durables has declined by Rs 14,900 crore. So, there is a net increase of around Rs 1.1 lakh crore,” said Ghosh.
On a year-on-year basis, outstanding bank credit as of end-August 2019 stood 9.9% higher than in the same period in the previous year. This reflects a moderation in growth compared to the 12.2% growth rate last year.
While sectoral credit numbers are available only up to end-August, the broader credit numbers are available up to mid-September.
Data released by the RBI under its weekly statistical supplement show that Indian banks’ loans rose 10.3% in the fortnight ended September 13 from previous year, while deposits climbed 10%.
Outstanding loans rose Rs 20,998 crore from a fortnight earlier to Rs 97 lakh crore on September 13. Bank deposits fell Rs 57,364 crore to Rs 127.2 lakh crore in the fortnight ended September 13.
Later in the day, the bank’s CEO Ravneet Singh issued a statement that the market rumours and statements regarding the bank’s asset quality were speculative, unsubstantiated, and irresponsible. He added that the bank’s capital and liquidity position are comfortably above the regulatory threshold and the asset quality is in line with the guidance provided after the Q1FY20 results.
“Subsequent to receiving the go ahead from RBI on Friday, September 27, 2019, the bank is firmly on track to raising the required growth capital.” Gill said. Adajania said top three stress loan exposures are 85% of bank’s net worth and twice existing base of NPAs. The report added that fall in share price will make further capital-raise dilutive. “We had assumed capital raise of $500 million, assuming a share price at Rs 85/100. We change our stock price assumption to Rs 55, which would lead to higher than earlier expected dilution.”