India’s bankers are getting their confidence back to lend as they come out of the covid pandemic slowly, both on growth and asset quality. Banks are more optimistic about a rebound in retail credit growth, which was the most severely hit by the pandemic, in the coming year. Some analysts worry that given the lack of clarity over consumer behaviour as well as credit quality in 2020, lenders should not bet on a clean slate on asset quality. The signs on asset quality have been mixed. More than liquidity, a sure sign of demand strengthening will turn banks’ confidence into a conviction to lend.

Source: Mint December 28, 2020 01:04 UTC