"On the banking side, what I am saying, there is not too many demand. It may be contrary to what the public discourse is. Reasons could be many. One is lot of clean-up has already happened and lot of deleveraging done. More than the banks, corporates themselves are reluctant to carry the tag of restructuring. That is the feeling I am getting," he said.
Talking about reforms in the financial sector, Chaudhry said the functioning of public sector banks has not changed even after consolidation or reduction in government holding, and they still have to carry the government agenda.
The data pertains to NBFC-MFI members of MFIN, a self-regulatory organisation and industry association of the microfinance sector in the country.
PMC was placed under RBI directions on September 23, 2019, after its NPAs rose sharply due to loans given to real estate company HDIL and its promoters the Wadhawan's with accounting for it in the bank's book.
Although not back to the pre-COVID-19 levels seen in January and February 2020, inquiry volumes have started to recover from their troughs in April and May 2020, and in July and August 2020 were similar to levels seen during the same period in 2018m, a report by Transunion Cibil, said.
The country's largest bank may soon carve out the digital platform into a separate entity, he said at a CII event. "The work has started," the chairman said.
The study done by the Indian Institute of Technology Bombay further suggested that there could be an upper ceiling of Rs 150 for a prescribed merchant discount rate (MDR) of 0.6 per cent.
The lenders get in touch with CICs while doing diligence on every credit proposal, which triggers in inquiries. It can be noted that many analysts have said that a large share of the incremental credit demand is coming from the more aggressive private sector lenders who also have larger capital buffers.
Speaking at the 47th National Management Convention of the All India Management Association (AIMA), Kumar said that credit growth had been slow this year as capex was not happening at the usual pace.
“As per our estimates, we believe overall stressed assets for banks is expected to touch 20% by FY21E which is perhaps the highest observed in the history of the banking system in India and also one of the highest in the world,” said Suresh Ganapathy, Associate Director, Macquarie Capital.
The Banking Regulation (Amendment) Bill, 2020, which replaces an ordinance that was promulgated on June 26, was passed by a voice vote in Rajya Sabha. The amendment had got approval from Lok Sabha on September 16.
The bank's retail customer will be asked to fill their account number on the relevant segment on the bank's website. After keying in the requisite information, customers will get to know their eligibility and receive a reference number.