Latest News | Commercial Lending Up 11 Pc in Sept Qtr, Delinquencies Decline to 2-year Low: Report

Mumbai, Feb 28 (PTI) The overall commercial credit portfolio grew 11 per cent in the September quarter to Rs 28.2 lakh crore, a credit information company said on Wednesday.

The delinquency rate at the end of September quarter dropped to the lowest in the last two years, as per the quarterly report by Sidbi and Transunion Cibil.

Also Read | CUET-UG Exam 2024: Application Process for Common University Entrance Test-UG Begins Today, Exams To Be Conducted in Hybrid Mode; Check Other Details.

It attributed the increased economic activity for the higher pick-up for loans by the commercial sector, and added that the demand for commercial loans grew 29 per cent during the quarter over the same period last year, which indicates improved lender confidence.

Sidbi's Chairman and Managing Director Sivasubramanian Ramann said the lending growth happened despite the conclusion of the Emergency Credit Line Guarantee Scheme (ECLGS) scheme, which indicates the underlying growth momentum of the sector.

Also Read | NTPC Recruitment 2024: Applications Invited for 110 Deputy Manager Posts, Know How to Apply at careers.ntpc.co.in.

Cibil's Managing Director and Chief Executive Rajesh Kumar said lenders can look at expanding their exposures to the micro, small and medium enterprises now on the back of promising economic growth prospects reflected through strong demand, stable portfolio growth and improved credit performance.

The overall balance-level delinquencies, measured as 90 days-past-due to 720 days-past-due and those reported as 'sub-standard', have improved to 2.3 per cent as of end-September from 3 per cent in the year-ago period, the report said.

The medium enterprises segment, where the exposures are in the range of Rs 10-50 crore, saw a degrowth in both value and volume terms, while both micro and small enterprises reported an uptick.

The manufacturing sector accounts for 37 per cent of the value originated and has the largest share, followed by the trade sector at 28 per cent share, the report said, adding that the professional services and other sectors together account for the remaining 35 per cent share.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)