SBI Composite Index continues to show upward momentum: Ecowrap report
The report noted that IIP & IIP manufacturing may grow 1.5-2.0% in December 2020 and 2-3% in January 21, respectively.
The yearly SBI Composite Index has continued its upward momentum since June, according to State Bank of India’s research report Ecowrap.
The monthly index also increased to 59.6 (High Growth) in Jan’21, compared to 58.2 (High Growth) in Dec’20 and 49.21 (Low Decline) in Jan’20.
The report noted that IIP & IIP manufacturing may grow 1.5-2.0% in December 2020 and 2-3% in January 21, respectively.
On NPAs. it said the government’s proposal to create an ARC/AMC to clean the stress in banking sector will increase the capacity of the banks to lend to the productive sector of the economy.
The report noted the Emergency Credit Line Guarantee Scheme (ECLGS) would continue to play a major role in the sequential improvement in bank credit.
“However, we may not see much credit offtake for new facilities i.e. term loans, this year. However, in sectors facing stress i.e. real estate, construction, textile etc. with elongated working capital cycle, we may see higher utilisation in working capital limits.” it said.
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