Your analysis points to a slowdown in the growth of corporate debt on account of pricing differentials and the proliferation of IPOs that led to the liquidation of existing debt.
Does this unwinding open avenues to lend to sunrise areas and improve access for the needy?
Yes it totally does, but the behemoth size of corporate loan book would make these sunrise areas look miniscule, therefore not really getting them the extra growth. That said, banks are already doing this very proactively.
If the RBI reduces interest rates in the upcoming monetary policy on account of lower inflation, banks’ NIMs may be affected in the coming quarters?
Your analysis points to a slowdown in the growth of corporate debt on account of pricing differentials and the proliferation of IPOs that led to the liquidation of existing debt.
Does this unwinding open avenues to lend to sunrise areas and improve access for the needy?
Yes it totally does, but the behemoth size of corporate loan book would make these sunrise areas look miniscule, therefore not really getting them the extra growth. That said, banks are already doing this very proactively.