The results of the said survey are also being strengthened by the sharp increase in the loan amount of scheduled commercial banks. During the last almost two years during the Corona pandemic, from March 2020 onwards, the rate of growth in the loan amount being provided by Indian banks was very low.
In a recent survey conducted by the State Bank of India, this fact has clearly emerged that almost all the industrial sectors in the country are now trying to increase their production capacity because these industries are more than 70 percent of their production capacity. Using more average. Whereas the textile, petrochemical and building materials industries have reached a position to utilize almost their full production capacity. In the said survey conducted recently by the State Bank of India, 70 percent of industrialists (from the fields of textile, food processing, chemical, power, etc.) have told that the environment of economic activities in the country is improving rapidly, so they come They are seriously contemplating to expand their production capacity during two to three years and plans are being made by them in this regard.
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The results of the said survey are also being strengthened by the sharp increase in the loan amount of all scheduled commercial banks in the recent times. During the last almost two years during the Corona pandemic, from March 2020 onwards, the rate of growth in the loan amount being provided by Indian banks was very low. But, now in the period ended December 17, 2021, an attractive growth rate of 7.3 percent has been registered in the loan amount provided by all the scheduled commercial banks. This is only slightly less than the growth rate of 7.5 percent in the period ending December 2019 in the pre-Corona pandemic period. On the contrary, the growth rate in the deposits of banks which was 12.3 percent in March 2021 has come down to 9.5 percent in December 2021. Due to the sharp increase in the loan amount, the loan: deposit ratio of these banks has also increased to 71.3 percent on 17 December 2021 from 69.9 percent on 13 August 2021. The most important fact has emerged that the annual Debt:Deposit Ratio has increased to a level of 133 in the period between 24th September 2021 to 17th December 2021 from only 2 levels during the first half year period of the financial year 2021-22. It was just An increase of Rs 3.5 lakh crore has been observed in the loan disbursed by the banks during this period. It is also a matter of joy that the demand for credit has increased in almost all sectors of the economy. This means that economic activities are increasing rapidly in all these areas. Large amount of loans have been disbursed especially in the sectors of infrastructure including telecom, petroleum, chemical, electronics, gems and jewelery and power and roads.
Due to the many new schemes recently implemented by the Central Government, such as Production Based Incentive Scheme, National Monetization Scheme and Export Incentive Scheme etc. and many other economic decisions taken in the recent times, the loan amount has earned the attractive growth rate mentioned above. could be done.
With the aim of accelerating economic activities, especially during the Corona pandemic period, so far capital investment was being done by the central government and capital investment from the private sector has been almost non-existent. But, now the circumstances are changing very fast and now the capital investment is also being increased by the private sector. While investment of Rs 10 lakh crore has been announced in India during the last two years, new investments of Rs 12.79 lakh crore are expected to be made during the first 9 months (April-December 2021) of the financial year 2021-22. Announcement has been made. It is expected that during the entire financial year 2021-22, announcements of Rs 15 lakh crore will be made regarding new investment and this amount is 50 percent more than the investment announcements made during the last two years. The sectors in which new investment announcements have been made during the last 9 months include – road construction sector (Rs 1.79 lakh crore), community services sector (Rs 1.16 lakh crore), house construction sector (Rs 1.19 lakh crore) , Steel Industry Sector (Rs 1.08 Lakh Crore), Machine Building Industry Sector (Rs 0.86 Lakh Crore), Power Industry Sector (Rs 0.80 Lakh Crore). The contribution of the private sector has also increased to 70 per cent, which was limited to 50 per cent a year ago. This clearly shows that private investment in capital expenditure is also increasing in the Indian economy. The five states of the country – Gujarat, Maharashtra, Tamil Nadu, Karnataka and Uttar Pradesh accounted for 55 per cent of the total new investments announced during the financial year 2021-22. Increasing investment in the Indian economy by the central government as well as the private sector will not only give impetus to the economy but also create new employment opportunities.
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There has also been a reduction in the average interest rate on fresh loans extended by banks. The average interest rate on new loan disbursed in the country was 8.46 percent during April 2020, which has come down to 7.98 percent in November 2021. Due to this, the industry and other beneficiaries have got the direct benefit of reducing the cost of credit. The average interest rate on new loans provided by public sector banks decreased from 8.34 per cent in April 2020 to 7.32 per cent in November 2021, but the average interest rate on new loans provided by private sector banks from 8.91 per cent in April 2020 It increased to 8.92 percent in November 2021. Thus getting loans from public sector banks has been comparatively cheaper.
The Capital Adequacy Ratio of all Scheduled Commercial Banks has reached an all-time high of 16.6 per cent for the quarter ended September 2021 and the Provision Coverage Ratio has also increased to 68.1 per cent, as per the recently released report by the Reserve Bank of India. Is. Similarly, in the quarter ended September 2021, the gross non-performing assets of these banks have come down to 6.9 percent and the net non-performing assets at 2.3 percent. Reduction in non-performing assets can be considered a good sign for the country’s economy and due to this, all scheduled commercial banks will be in a position to easily meet the ever-increasing credit demand in the country.
retired deputy general manager
State Bank of India