The banking sector has witnessed Gedempte Credit growth of companies, since companies have made alternative sources of financing, including bond markets | Photocredit:
State Bank of India, the largest lender in the country, expects that the demand for company credit will come new life in the future, if the current situation of hardening of bond endings will continue. The banking sector has witnessed Gedempte Credit growth of companies, since companies have made alternative sources of financing, including bond markets. The dependence on the bank credit company continued to decrease in the first quarter of this fiscal, when issues in corporate bonds £ 3 Lakh Crore exceeded, the highest in recent years.
“What we have seen is that the issue of the volume [in the bond market] has landed in the current [second] quarter. About £ 3 Lakh Crore of issues happened in the first quarter; That part came down until August. That means that the proceeds are paving. If the proceeds continue like this for whatever reason, then [corporates] Will have to come back to the banking system, “said Rama Mohan Rao Amara, Managing Director – International Banking, Global Markets & Technology, State Bank of India.
Amara spoke with the media on the sidelines of the 18th edition of the CII Eastern Region Banking Colloquium on Wednesday. In particular, large banks witnessed Gedempte Bedrijfkredietgroei in the first quarter of the current financial year. HDFC Bank’s Corporate and Other Wholesale Advances Portfolio hit 1.7 percent against 18.7 percent in the quarter of a year ago. The domestic business loan portfolio of Icici Bank moderated to 7.5 percent compared to 10.3 percent in Q1FY25.
For Union Bank of India, the large growth of the company and others, the growth of the company also went to 2.68 percent in the first quarter this tax -against 7.81 percent in the period of a year ago. Last month, SBI chairman CS Setty said that the Gedempte Credit growth of companies for banks was the result of companies on their way to commercial papers to replace the limits of the working capital of lenders.
Rate of impact
When asked about the impact on international trade financing after the imposition of stiff 50 percent rates by the US on Indian goods, Amara said that the tariff effect still needs to be felt. “A lot of rechargeable happened in the first quarter. In the second quarter we might see whether the problem has not been solved and whether the exporters do not get alternative locations … It is too early to comment on something important,” Amara said.
Indian exporters have expressed their concern about the recent escalation of rates imposed by the US on their market access, competitiveness and generating employment, whereby the government is encouraged to tackle these concerns.
The extra rate of 25 percent by the US on Indian products for purchasing Russian oil from the country came into force on 27 August, which imposed the total amount of tax on India to 50 percent. “Many things have been demanded by industry. I think the Ministry of Finance is investigating them. I think they are waiting and watching and assessing the position,” Amara added.
Published on September 10, 2025
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