A report by Dun & Bradstreet has said that the coming 2013 too looks to be a tough one for India Indian banking sector. Even 2012 was a volatile year for Indian banking, marked mostly by its wait for a cut in rates by RBI since April 2012 and fast deterioration in asset quality.
Indian banking sector would be looking at a revival in the economic growth for it to witness credit growth to pick up pace and the deterioration of asset quality to arrest, even if it does not reverse the trend, while competition is expected to intensify, a report by Dun & Bradstreet pointed out.
The Dun & Bradstreet report pointed out that the overall credit for scheduled commercial banks’ grew at a slower pace during financial year 2012 at 17 per cent year-on-year (Y-o-Y) as compared to 21.5 per cent registered during FY11, and as per RBI’s second quarter monetary policy review for FY13, the estimated GDP growth FY13 was revised downwards from 6.5 per cent to 5.8 per cent.
Any further slowdown in the Indian economic growth is likely to impact the demand for bank credit, the Dun & Bradstreet report pointed out.
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