Latest news with #SaurabhBhalerao
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Business Standard
3 days ago
- Business
- Business Standard
Credit growth rose to 10% in July 25 fortnight, deposit growth at 10.2%
Credit growth in the fortnight ended 25 July inched up to 10 per cent year-on-year (Y-o-Y), while deposits during this period continued to outpace credit growth, rising 10.2 per cent Y-o-Y, latest data from the Reserve Bank of India (RBI) showed. During the same period last year, banking system credit grew 13.7 per cent, while deposits grew 10.6 per cent. In the previous fortnight (11 July), credit growth stood at 9.8 per cent and deposit growth was 10.1 per cent. In absolute terms, outstanding credit in the banking system stood at Rs 185.02 trillion in the fortnight ended 25 July, while outstanding deposits stood at Rs 233.50 trillion. During the fortnight, credit rose by Rs 31,979 crore, and deposits grew by Rs 23,573 crore. 'The credit and deposit growth is expected to linger around similar levels. In case of credit growth, retail credit growth is cooling down across segments barring gold loans. Also, the bond market is offering better yield — this has shifted corporate credit demand away from banks. On the other hand, banks are finding it difficult to source funds due to the alternative avenues available to customers,' said Saurabh Bhalerao, Associate Director and Head — BFSI Research, CareEdge. Rating agencies estimate credit growth this year (FY26) to be around 11.5–12.5 per cent, but there could be some revision to the projections.
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Business Standard
3 days ago
- Business
- Business Standard
Credit growth rises to 10% in July 25 fortnight, deposit growth at 10.2%
Credit growth in the fortnight ended 25 July inched up to 10 per cent year-on-year (Y-o-Y), while deposits during this period continued to outpace credit growth, rising 10.2 per cent Y-o-Y, latest data from the Reserve Bank of India (RBI) showed. During the same period last year, banking system credit grew 13.7 per cent, while deposits grew 10.6 per cent. In the previous fortnight (11 July), credit growth stood at 9.8 per cent and deposit growth was 10.1 per cent. In absolute terms, outstanding credit in the banking system stood at Rs 185.02 trillion in the fortnight ended 25 July, while outstanding deposits stood at Rs 233.50 trillion. During the fortnight, credit rose by Rs 31,979 crore, and deposits grew by Rs 23,573 crore. 'The credit and deposit growth is expected to linger around similar levels. In case of credit growth, retail credit growth is cooling down across segments barring gold loans. Also, the bond market is offering better yield — this has shifted corporate credit demand away from banks. On the other hand, banks are finding it difficult to source funds due to the alternative avenues available to customers,' said Saurabh Bhalerao, Associate Director and Head — BFSI Research, CareEdge. Rating agencies estimate credit growth this year (FY26) to be around 11.5–12.5 per cent, but there could be some revision to the projections.
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Business Standard
22-07-2025
- Business
- Business Standard
Credit Card in force stays flat in June; ICICI, Axis Bank cards decline
The overall number of credit cards in force in the country remained flat at 111.19 million in June 2025 compared to May 2025, as banks continue to calibrate their credit card portfolios amid concerns about delinquencies, according to analysts. Credit card spends also declined in June compared to the previous month. According to data released by the Reserve Bank of India (RBI), the number of credit cards in force increased by 7.12 per cent Year-on-Year (YoY), from 103.81 million in June 2024. 'Lenders are likely tightening their underwriting standards and credit card issuances. They are also cleaning their portfolios, which has resulted in a minor drop in the overall number of credit cards in the system,' said Saurabh Bhalerao, Associate Director, CareEdge Ratings. Among the leading credit card issuers, HDFC Bank added 212,786 cards in the month, bringing its total to 24.48 million. SBI Cards added 83,281 cards to reach 21.19 million. Meanwhile, the third-largest credit card issuer, ICICI Bank, saw a drop of 287,439 cards, bringing its total to 17.98 million. Axis Bank also experienced a decline, with its card issuances dropping by 6,271 cards to 15.05 million. 'Banks might be more cautious with credit card issuances due to increased delinquencies and may also be cleaning out unused cards. The upcoming festive season might provide more clarity on the portfolio,' said an analyst. During its post-earnings media call, Axis Bank's management stated, 'We have observed that credit cards are stabilizing for us. Regarding personal loans, post-credit corrections that were undertaken, early rates on the new portfolio are encouraging, with delinquency lower than in the previously underwritten portfolio.' ICICI Bank saw muted growth in its card portfolio during the April-June period, with the credit card portfolio growing by 1.5 per cent YoY, but declining by 5.4 per cent sequentially. Credit card spending slipped to Rs 1.83 trillion in June, down from Rs 1.89 trillion in May 2025. HDFC Bank's card spending fell by 1.14 per cent MoM to Rs 51,158 crore. ICICI Bank's credit card spending dropped by 3.37 per cent to Rs 33,351.4 crore. SBI Cards posted a 5.6 per cent drop in spending to Rs 30,572 crore, and Axis Bank's spending decreased by 2.6 per cent MoM to Rs 21,868 crore.
Indian Express
20-07-2025
- Business
- Indian Express
Premium mobilisation: PSU non-life insurers outperform private players in June quarter
Public sector general insurance companies outperformed their private sector rivals in the first quarter ended June 2025, recording a 14.6 per cent increase in gross premiums underwritten—well above the industry average of 8.84 per cent. They also succeeded in expanding their market share during this period despite an overall slowdown in the growth in health insurance premium. The four PSU general insurers reported a premium mobilisation of Rs 27,787 crore for the June 2025 quarter as against Rs 24,233 crore a year ago, according to figures available with the General Insurance Council. Industry leader New India Assurance posted a growth of 15.2 per cent at Rs 12,299 crore, Oriental Insurance showed a growth of 21.4 per cent, National Insurance 14.93 per cent and United India 7.17 per cent growth. New India Assurance also increased its market share from 14.67 per cent in June 2024 quarter to 15.51 per cent in the June 2025 quarter. Oriental Insurance also increased its market share from 6.46 per cent to 7.34 per cent during the same period and National Insurance from 4.78 per cent to 5.04 per cent. At the same time, among private players, ICICI Lombard showed a growth 0.61 per cent at Rs 7734.86 crore in premium underwritten for the June quarter. Bajaj Allianz General Insurance posted a growth of 9.63 per cent and Reliance General Insurance 1.60 per cent. ICICI Lombard's market share declined from 10.57 per cent to 9.75 per cent in June 2025 quarter. The overall industry premium underwritten increased by 8.84 per cent to Rs 79,301 crore for the June quarter, according to the GI Council. Total health premium underwritten increased by 8.12 per cent to Rs 32,343 crore in the June 2025 quarter as against a growth of 16.58 per cent in the June 2024 quarter. In June 2025, the non-life insurance industry reported a premium of Rs 23,422.5 crore, representing a 5.2 per cent growth compared to the 8.4 per cent growth reported in June 2024. 'The industry's transition to the 1/n rule, slowing health, and subdued PV growth have affected the industry's performance, partially offset by renewals in the fire and engineering segment,' said Saurabh Bhalerao, Associate Director of CareEdge Ratings. The '1/n rule' in insurance refers to an accounting method where commissions for long-term insurance policies are recognized evenly over the duration of the policy, rather than being recorded entirely at the outset. This represents a shift from earlier practices that allowed full commission recognition upfront. As a result, this change affects how insurers report their premiums, often leading to a lower reported premium in the initial period — particularly impacting public sector general insurers. Insurance industry sources say that premium collections from government-backed health schemes have dropped sharply, as many state and central programs have shifted from insurance-based models to trust-based funding. This change has reduced the overall premium inflow for insurers. At the same time, steep hikes in health insurance premiums — driven by rising medical costs, an 18 per cent GST, and higher hospital expenses — have put pressure on household finances. As a result, consumer demand has declined, and retail health insurance growth has slowed to around 10–13 per cent in FY25, compared to 20–25 per cent in earlier years. Non-life insurance premiums crossed the Rs 3-lakh crore mark in FY25, driven by supportive regulations, rising Insurtech adoption, accelerating digitalisation, and an expanding middle class. The government's Bima Trinity push is poised to accelerate growth in the non-life insurance sector. Standalone health insurers are expected to maintain their dominance in the retail health space. 'At the same time, the trajectory of motor insurance will closely follow vehicle sales and the upcoming revisions to third-party tariffs. The proposed rollout of composite licences could reshape the competitive landscape in the medium term. However, rising competition and global geopolitical uncertainties will remain crucial watchpoints for the sector,' it said.
Hans India
13-07-2025
- Business
- Hans India
India's life insurance industry to grow at 10-12 pc over 3-5 yrs
The Indian life insurance industry registered new business premiums of Rs 41,117.1 crore in June amid the ongoing impact of the revised surrender value regulations, lower credit life sales, and group single premiums, according to a new report. CareEdge Ratings expects the life insurance industry to continue to grow at 10 per cent-12 per cent over a three-to-five-year horizon, driven by product innovation along with supportive regulations, rapid digitalisation, effective distribution, and improving customer services. In June, the annual premium equivalent (APE) rose by 2.5 per cent, a slower growth rate compared to the 20.0 per cent increase in the same period last year. In APE terms, the industry grew at an 11.0 per cent compounded annual growth rate (CAGR) between June 2023 and June 2025. During this period, private insurers grew at 15.4 per cent, according to the report. 'The first quarter is typically a slow period for the life insurance sector, as it follows the fiscal year-end when most retail customers have already purchased policies in a last-minute rush,' said Saurabh Bhalerao, Associate Director, CareEdge Ratings. In Q1 FY26, the quarter-on-quarter growth has increased by 4.3 per cent compared to 22.9 per cent growth in the same quarter a year ago, mainly because of muted consumer demand and the impact of revised surrender value guidelines, which were effective October 1, 2024.
