Growth rate of bank deposits sluggish, plan to extort 1.3 lakh crore from bonds
New Delhi|Due to slow deposit growth, banks will now have to raise money through other means. Rating agency ICRA believes that in the current financial year, banks will have to raise Rs 1.3 lakh crore by issuing bonds. This amount raised through bonds will be the highest amount ever. The ongoing gap between deposit and debt growth has to be reduced.
About 85 percent of the bonds will be issued by public sector banks, ICRA said in the report released on Tuesday. These bonds will be from the infra sector. Due to the dire liquidity situation and credit growth being higher than the continuous deposit growth, it has become necessary for banks to raise funds from alternative sources. Banks have raised Rs 1 lakh crore from bonds in 2023-24. Earlier in 2022-23, a record Rs 1.1 lakh crore was raised.
Banks have raised Rs 76,700 crore from bonds so far in the current financial year. This is much higher than the amount raised during the same period in FY 2023-24. Banks’ advances in infrastructure sector are estimated to be Rs 13-14 lakh crore as of June 30, 2024. Public sector banks account for 75 per cent of this.
SBI Chairman Challa Srinivasulu Shetty said, the bank has received a demand for a loan of Rs 4 lakh crore from the industry. This suggests that private sector capital spending will accelerate in the second half of 2024-25. Funding for infra is coming from roads, renewable energy and some refineries.
