Credit Suisse Report

Published on August 21, 2019
Current context: As per the Credit Suisse Report, Growth in loans by non-banking finance companies (NBFCs) and private banks has slowed down due to a slump in economic growth, consumption demand, etc.
Credit Suisse Report
  • The slowdown in the private sector lenders is caused mainly due to moderation in vehicle loans. 
  • A dip of 11% y-o-y has been seen for NBFCs and 15% y-o-y dip for private banks loan’s growth.
  • The slowdown in the auto sector and increased caution is expected to be the prime reason for the moderation in vehicle loans.
  • RBI to encourage banks to lend more in these sectors has recently reduced the risk weight on unsecured personal loans and individual vehicle loans from 125% to 100%.

Question: 

Q.1 As per the recently released Credit Suisse Report, which statement correctly depicts the current lending situation of the entities?
a. Growth in loans by NBFCs has slowed down
b. Growth in loans by private banks has slowed down
c. Both a & b
d. None of them

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