Latest news with #stateOwnedBanks
Reuters
3 days ago
- Business
- Reuters
India's new infrastructure lending rules to support loan growth, Moody's says
June 30 (Reuters) - India's final rules easing provisions for loans to under-construction infrastructure projects are likely to revive credit growth in the sector, Moody's Ratings said on Monday. The Reserve Bank of India earlier this month cut the provisioning requirement to 1% from a proposed 5%, a move expected to boost banks' willingness to fund infrastructure developments, Moody's said. "We expect the guidelines' finalization will reduce uncertainty in project financing and support medium-term growth," Moody's said. Infrastructure credit shrank 0.8% between April 2024 and April 2025 after the Reserve Bank of India proposed tighter lending norms last May, Moody's said, adding that lending by non-bank infrastructure financiers also lagged, growing at an annualised 6.9% between March and September 2024, versus 13.2% for the broader NBFC sector. Prolonged project delays and overly optimistic revenue forecasts have triggered major loan defaults in India, leaving lenders cautious on infrastructure lending. The new rules take effect from Oct. 1. The ratings agency said state-owned banks and non-bank lenders, most exposed to the infrastructure sector, would see a "slight negative impact" on profitability for loans that are not disbursed by October 1, although that would likely be a "one-off effect." Additional steps such as extended deadlines for project completion and commercial operations will help support asset quality in the sector, Moody's said.
Reuters
20-05-2025
- Business
- Reuters
China Construction Bank cuts deposit rates
BEIJING, May 20 (Reuters) - China Construction Bank ( opens new tab cut deposit rates on Tuesday, part of an expected move by Chinese state-owned banks to alleviate shrinking interest margins at lenders as Beijing rolls out sweeping monetary easing measures to aid the broad economy. The bank reduced deposit rates by 5-25 basis points for some tenors, according to rates shown on its mobile app. Reuters reported on Monday that China's major state banks plan to cut their deposit rates from Tuesday, citing sources.
