Loan growth of Private sector banks to be double of PSBs till FY19 – Feedback

Private sector lenders will witness an annual credit growth of 24 per cent till financial year 2019, twice that of their ailing and capital-starved state-run peers, domestic ratings agency CrisilBSE 0.31 % said today. “Advances of private banks are likely to grow at a compounded annual growth rate of 24 per cent between fiscal years 2016 and 2019, materially ahead of 12 per cent for public sector banks over the same four-year period,” it said.

Factors aiding this aggressive loan book growth will be private sector lenders^ strong balance-sheets, large presence in retail segment and strong low-cost liability franchise, it said.  Private sector banks^ loan books have grown at 21 per cent per annum in the five years to FY15, as against a 17 per cent for state-run lenders, it noted.

http://economictimes.indiatimes.com/industry/banking/finance/banking/loan-growth-of-private-sector-banks-to-be-double-of-psbs-till-fy19/articleshow/50639546.cms

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