Bonjour, new guests from small-town India
Puneet Dhawan of Accor is brimming with ideas on ways to revive the hospitality sector
SS Mallikarjuna Rao, MD and CEO of Punjab National Bank
Mallikarjuna Rao, MD and CEO, Punjab National Bank, on Friday, said that credit growth is expected to start moving on a higher trajectory from the fourth quarter of this fiscal.
The low credit offtake over the last couple of quarters was primarily due to the laxity of demand in the wake of the slowdown induced by the pandemic. It was not due to the risk aversion of banks as is popularly believed, he said.
“During the pandemic there was laxity in demand and despite the tax reforms in October 2019, there was not much of investments coming in, and this goes to show the poor demand. But now with the good creation of supply and demand, we expect lending will see a higher growth particularly from Q4 onwards,” said Rao, while addressing the Financial Market E-Conclave organised by the Bengal Chamber of Commerce and Industry here on Friday.
Public sector banks play a very important role in the revival of economy and in lending to the infrastructure sector.
Of late, banks, particularly PSBs, have been blamed for being too risk averse and, hence, choke credit to the economy. However, Rao said that based on the past experiences, banks have enhanced their credit underwriting mechanisms so as to ensure credit quality. This would augur well for the overall ecosystem in the long run.
“It is good that banks are taking precaution on quality of credit,” he said.
According to G Rajkiran Rai, Managing Director and Chief Executive Officer, Union Bank of India, corporate borrowers were accustomed to borrowing more easily without focussing on risk management practices, and now they are finding it difficult as more data is required under the enhanced credit monitoring system.
“So, they are feeling that banks have become risk averse but that is not the case,” he clarified.
This would lead to better underwriting capabilities, better risk management, and eventhough some coprorate customers may find it difficult to go through more rigorous processes, it is good for overall ecosystem.
Puneet Dhawan of Accor is brimming with ideas on ways to revive the hospitality sector
Citroen’s first vehicle sports a novel design and European interiors. It is also meant to be as comfortable as ...
The pandemic is only the tip of the iceberg that the country’s cash-poor airlines — both regional and national ...
The government is yet to specify the framework of its recently announced old vehicle scrappage policy
Here is a checklist that equips you to discern the market nuances
Sensex, Nifty 50 have witnessed sharp decline
The fund has consistently outperformed S&P BSE 100 TRI over one, three and five years
Returns are superior to immediate annuity plans, but SCSS can secure better rates for new investors sooner if ...
They are the health warriors who battled the Covid-19 pandemic on the ground, and are now the face of the ...
Reading in the loo — flipping through anything, really — appears to help the locomotion
Creator of the world’s biggest art canvas hopes to help children in poorer countries
A book on Badri Narayan is a tribute — albeit a belated one — to an artist who did not enjoy the recognition ...
Its name is the starting point of a brand’s journey and can make a big difference in the success sweepstakes
Sober spirits are the in thing
A peek into where ad spends went last year and where they are headed tomorrow
Can Swiggy Instamart disrupt the ecommerce groceries space, currently ruled by the Amazons and Big Baskets? ...
Three years after its inception, compliance with GST procedures remains a headache for exporters, job workers ...
Corporate social responsibility (CSR) initiatives of companies are altering the prospects for wooden toys of ...
Aequs Aerospace to create space for large-scale manufacture of toys at Koppal
And it has every reason to smile. Covid-19 has triggered a consumer shift towards branded products as ...