Companies and people goes for more loans
A new study conducted for analysing the loan ratios signals that the Indian economy is growing. Its shows that the recession in India is going away with more companies and individuals looking forward to avail loan for themselves.
THE NEW study conducted for analysing the loan ratios shows that the recession in India is going away with more companies and individuals looking forward to avail loan for themselves with the motive of buying homes, cars and establishing new factories.
The individuals as well as companies are going for more home loans, car loans and personal loans to utilise the lower interest rates. This analysis signals the growth of Indian economy.
Many public sector banks have stated that companies, which earlier obtained sanctions for their loans are now willing to get their disbursal with the motive of establishing new projects in the infrastructure.
The banks have also stated that the individuals are coming in big numbers to avail home loans and car loans for buying new home and vehicles. The individuals are getting attracted towards the new lower rates offered by the banks like Axis Bank, HDFC and State Bank of India.
Some bankers are saying that the loan rates could go up in the near future as the demands for home as well as car loans is increasing with the reviving economy.
According to the data presented by the Reserve Bank of India, Rs 56,303 crore more bank loans were disbursed till the second quarter of current fiscal. A drop of Rs 7,456 crore was witnessed in loans in the same quarter of previous fiscal. With this rise, the lenders are expected to go back with their core business. In the previous fiscal, banks witnessed a lower demand for loans due to the global economic slowdown.
Many bankers stated that their loan books are witnessing northward movement. The banks like State Bank of India, Canara Bank, Union Bank and Bank of Baroda are the biggest beneficiaries of this surge in loan books.
The head of Indian Banks' Association MV Nair said that the business confidence in also improving in the Indian economy as the industrial output is better than expected.
According to the latest IIP data, the industry has shown the growth of 6.8 per cent growth.
Nair added that this growth is resulted in the better utilisation of sanctions which are availed by the companies in last six month.
Union Bank of India, which is also headed by Nair has shown the growth of 25 per cent in its retail loan portfolio. Lending to farmers is also increased with this growth.
Many public sector banks have stated that companies, which earlier obtained sanctions for their loans are now willing to get their disbursal with the motive of establishing new projects in the infrastructure.
The banks have also stated that the individuals are coming in big numbers to avail home loans and car loans for buying new home and vehicles. The individuals are getting attracted towards the new lower rates offered by the banks like Axis Bank, HDFC and State Bank of India.
Some bankers are saying that the loan rates could go up in the near future as the demands for home as well as car loans is increasing with the reviving economy.
According to the data presented by the Reserve Bank of India, Rs 56,303 crore more bank loans were disbursed till the second quarter of current fiscal. A drop of Rs 7,456 crore was witnessed in loans in the same quarter of previous fiscal. With this rise, the lenders are expected to go back with their core business. In the previous fiscal, banks witnessed a lower demand for loans due to the global economic slowdown.
Many bankers stated that their loan books are witnessing northward movement. The banks like State Bank of India, Canara Bank, Union Bank and Bank of Baroda are the biggest beneficiaries of this surge in loan books.
The head of Indian Banks' Association MV Nair said that the business confidence in also improving in the Indian economy as the industrial output is better than expected.
According to the latest IIP data, the industry has shown the growth of 6.8 per cent growth.
Nair added that this growth is resulted in the better utilisation of sanctions which are availed by the companies in last six month.
Union Bank of India, which is also headed by Nair has shown the growth of 25 per cent in its retail loan portfolio. Lending to farmers is also increased with this growth.
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