Kotak Mahindra Bank Personal Loan India

Bangalore/Chennai: Depository Financial Institution loan growing is slowing down. The figure for the financial so far is Rs 9,132 crore against Rs 66,950 crore during the corresponding former period, according to the Modesty Depository Financial Institution of India's weekly statistical supplement.

Sluggish trend

Top bankers confirmed the tendencies showing sluggish borrowing.

HDFC Bank's Country Head for Retail Assets, Pralay Mondal, said: "Yes, there is a lag in retail recognition offtake. It is far less than what it was last year."

Are these incipient marks of an economical slowdown? Populace sector bankers as well as corporate finance caputs preferred to be cautious and not read too much into these numbers, just yet.

Canara Bank's President and Managing Director, M.B.N. Rao, said: "The extremum season have not yet begun. So, it is too early to state there is a slowdown. Besides, we have got all taken to portfolio re-balancing for increasing handiness to the productive sectors of the economy."

V.M. Mohan, Joint President (Corporate Finance), Republic Of India Cements, agreed with that view.

Seasonal element

"We have got to wait and see for another one-fourth at least before we can state that with certainty. There is a still a seasonal component in many industries. For instance, in the cement industry you can't foretell the demand during the monsoons. Usually, if it is dull at that clip there is a pick-up in the followers quarter. But we make sense that bankers are not gung-ho astir loan growing as they once were."

A.S. Ravi, Executive Vice-President (Finance), Lucas-TVS, said: "Interest rates have got tightened in the Indian money market. It have gone up by about two per centum points over the past year, although it have since come up down slightly. We make not yet see any slowdown. All of us are on a growing path. The charge per unit of growing may not be as high as it was about 18 calendar months ago, when the economic system was still in the recovery mode."

Despite such as reassurances, corporate adoption forms are worrying.

ECB rush

Till the center of August, when the run batted in cracked down on external commercial adoptions (ECBs), top corporates had been in favor of ECBs in topographic point of domestic credit. Pricing was one critical factor drive the pushing to ECBs. With effectual costs at just nine per cent, ECBs were seen as a better beginning of funding.

The ECB window is now practically closed owed to a figure of restrictions. But domestic rates are still on the high side.

A. Subba Rao, CFO of the GMR Group, said: "For undertaking finance we would wish to see less rates. Till such as clip rates come up down we will pull on our ain resources."

That the draw down have started was evident from the autumn in demand sedimentations by over Rs 49,000 crore from the beginning of this year.

A top banker said that corporates are redeeming majority sedimentations they had placed with the Banks in March.