1.2L Cr Till Aug End

The Times of India (New Delhi edition) - - Times Global -

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.”

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