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RBI: Bank credit up 13.24% , deposits up 10% in Financial Year 2019




Signalling credit offtake, Reserve Bank of India data have shown banks have ended the 2018-2019 with record double digit disbursals for the second year consecutively after the under-5 per cent in FY17, which was the lowest in five decades.

According to the RBI data released on Thursday, bank credit rose 13.24 per cent to Rs 97.67 lakh crore for the fortnight to March 29, while deposits grew by 10.03 per cent to Rs 125.72 lakh crore during the same period.

This is the second consecutive double-digits credit growth after the same had declined to 4.54 per cent in FY17 at Rs 78.41 lakh crore, which was the lowest since 1963.

In the year-ago fortnight, deposits were at Rs 114.26 lakh crore and advances at Rs 86.25 lakh crore. In FY17, aggregate deposits in the banking system grew a mere 6.7 per cent in 2017-18, while credit grew still lower at 4.54 per cent, the lowest since fiscal 1963.

Bank deposit growth had declined to a five-decade low in year to March 2017 as under the fading impact of demonetisation.

During November-December 2016, banks received Rs 15.28 lakh crore as people deposited high denomination currency notes withdrawn from circulation on November 8. This led to aggregate deposits in the fiscal ended March 2017 to Rs 108 lakh crore.

In the previous fortnight to March 15, 2019 credit demand had grown by 14.46 per cent to Rs 95.53 lakh crore while deposits increased by 10.03 per cent to Rs 122.26 lakh crore, showed RBI data.

On a year-on-year basis, non-food bank credit increased by 13.2 per cent in February 2019 as compared with an increase of 9.8 per cent in the year-ago period.

Loans to the services sector almost doubled with a 23.7 per cent growth in February compared to 14.2 per cent in the same month last year.

Advances to agriculture and allied activities increased by 7.5 per cent in February compared to an increase of 9 per cent in February 2018.

Credit to the industry rose by 5.6 per cent in February, up from an increase of 1 per cent in February 2018.

Credit to the infrastructure, chemical and chemical products, and all engineering sectors accelerated. However, credit growth to basic metal & metal products, textiles, and food processing decelerated/contracted.

Personal loans rose 16.7 per cent in February down from 20.4 per cent in February 2018.


Petrol and diesel prices remain unchanged on Monday




The rise in the petrol and diesel price has paused for the last couple of days as oil marketing companies have decided to wait and watch the developments on the global oil market before finalising their India retail strategy.

Accordingly, oil marketing companies kept the pump price of petrol and diesel unchanged on Monday. With this, petrol continues to be priced at Rs 91.17 a litre and diesel Rs 81.47 a litre in the national capital.

Across the country as well the petrol and diesel prices remain unchanged.

Sources in OMCs said that price pause on Monday followed subdued movement in product price in global markets. The crude oil, which has been on fire for the last couple of weeks has also shown some downward movement lately but staying above $65 a barrel now.

Petrol and diesel prices have been rising continuously since February 9. In the 14 increases since then, prices have gone up by Rs 4.22 per litre for petrol while diesel rate has risen by Rs 4.34 a litre in Delhi.

The increase in the previous weeks has taken petrol to cross historic high levels of Rs 100 a litre in several cities across the country.

In Mumbai, petrol price is just Rs 2.4 per litre short (Rs 97.57 a litre) of touching the three digit mark of Rs 100 per litre for the very first time ever. Diesel price in the city is closing on Rs 90 a litre (Rs 88.60 a litre).

In all other metros, petrol is over Rs 90 a litre-mark while diesel is well over Rs 80 a litre. Premium petrol has crossed Rs 100 per litre-mark in several cities of Rajasthan, Madhya Pradesh and Maharashtra a few days back.

Since fuel prices are benchmarked to a 15-day rolling average of global refined products’ prices and dollar exchange rate, pump prices can be expected to remain northbound over the next few days even if crude price stabilises.

The petrol and diesel prices have increased 26 times in 2021 with the two auto fuels increasing by Rs 7.46 and Rs 7.60 per litre respectively so far this year.

Oil companies’ executives said that petrol and diesel prices may increase further in coming days as retail rates may have to be balanced in line with global developments to prevent OMCs from making losses on sale of auto fuels.

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Hyundai Motor India’s overall February sales over 26%




Hyundai Motor India on Monday reported a growth of 26.4 per cent in its overall sales including exports during February.

The company’s overall sales grew to 61,800 units from 48,910 units sold during February 2020.

Similarly, the company’s domestic sales rose during the month under review.

It edged higher by 29 per cent to 51,600 units from 40,010 units sold during the corresponding month of the previous year.

Similarly, exports increased and it rose by 14.6 per cent to 10,200 units from 8,900 units shipped out during February 2020.

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Manappuram Finance board mulls debt securities




Manappuram Finance on Monday said that its Board of Directors is likely to consider and approved the issuances of debt securities this month.

In a regulatory filing, the company said that it is considering various options for raising funds through borrowings including by the way of issuance of various debt securities in onshore or offshore securities market by public issue, on private placement basis or through issuing commercial papers.

“Based on the prevailing market conditions, the Board of Directors and / or Financial Resources and Management Committee / Debenture Committee of the Board of Directors of the company may consider and approve issuances of debt securities during the month of March, 2021, subject to such terms and conditions including the issue price of debt securities, as the Board / respective Committee may deem fit,” it said.

Around 1.15 p.m., its shares on the BSE were trading at Rs 173.50, lower by Rs 2.70 or 1.53 per cent from its previous close.

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