Banks more careful in punishing new loans to exporters with higher business dependence on American markets
Indian banks have supervised their exposure to the export credit segment and are more careful in punishing new loans to exporters with higher business dependence on American markets, bankers said.
The US is said to have imposed a rate of 25 percent on Indian goods that come to the country, from 7 August. An additional 25 percent duty is planned for imposed from 27 August, with the total rate of up to 50 percent.
“Banks are currently assessing their exposures to export oriented segments, according to developments at American rates. The analysis is mainly to determine two things: how much of their total turnover is there, and secondly how many of their total exports will probably be hit by the rate,” said Virat Diwanji, National Head of Consumer Bank.
Given the uncertainty, Diwanji said that lenders would be careful with punishing new loan proposals from such customers. From now on, however, customers will continue to use their limit for loans sanction and do not see lenders any immediate adverse impact on their reimbursement trends.
Export export credit
The outstanding export credit of banks amounted to £ 13,047 on 27 June, an increase of 11 percent on a year after year (JoJ), according to data from Reserve Bank of India (RBI).
A senior official of the public sector said that the lender assesses the first order and the secondary impact of proposed rates at Indian exporters. “We are careful with new sanctions and the approval of loans based on existing customers. We are taking a call on sector on a sector basis,” they said, adding that segments such as textile, chemicals, pharmaceutical, electronics. Gems and jewelry more will be influenced if the proposed rates are implemented without concessions.
A bank officer of the private sector said that although the larger exporters may be able to move exports to markets other than the US, there would still be a major impact on jobs and the GDP growth, because the US remains a huge market for Indian exporters. “Although large exporters could possibly absorb stress, the government could come up with subsidies to absorb loses from small -scale exporters to prevent job losses,” they said.
Published on August 21, 2025
#Rate #impact #Indian #banks #increase #control #exposure #risks #export #credit