
When asset utilisation grows, credit demand for capex will come back, Patra said.įor the first time since the pandemic, bank credit growth turned positive by 10 bps or Rs 7,283 crore in the week to September 24, against a contraction of 1 per cent (or Rs 99,280 crore) on-year.The demand pick up continued into the week to November 19 when on an annualised basis, bank credit rose 6.97 per cent, taking the outstanding bank credit to Rs 111.62 lakh crore, up from Rs 104.34 lakh crore a year ago. They will need fresh investment to augment capacity only when they saturate the existing capacity and when that happens, it will kickstart the much delayed private capital expenditure (capex). Patra, while admitting that credit demand is yet to reach the pre-pandemic levels, blamed it on the missing private investment and private demand which he said is due to the fact that corporates are still facing surplus capacity built over the years. So cumulatively, credit flow has been on the rise. The governor also pointed out that large and medium companies have raised lot of money from markets and replaced high-cost bank loans with low-cost funds from the market. Supply of commercial papers, NCDs, bonds and ECBs have also improved since last year since these debt instruments are also linked to the RBI rates, he observed. Calculate their turnover costs for the average position on their team using: Cost Per Hire + Lost Productivity.


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