Page 13 - Banking Finance August 2023

ROUNDUP

Consensus on develop- bolstering the upward trend in credit financing for scaling up renewable en-
market activity since mid2021. ergy, producing green hydrogen, sup-
ment bank reform a gain porting carbon markets and stimulat-
All credit products, barring mortgage
at G20 meet: Govt loans, registered doubledigit growth in ing climate financing.
The government counted consensus FY23, with outstanding advances for "The World Bank's Board of Executive
around the need to reform multilateral product categories rising 1438 per cent Directors approved $1.5 billion in fi-
development banks (MDBs) as one of YoY. The slump in home loans was led nancing to accelerate India's develop-
the gains from the meeting of G20 fi- by the affordable housing segment - ment of low-carbon energy. The financ-
nance ministers and central bank gov- home loans with sanction amount of ing will help India promote low-carbon
ernors, but added that there will be less than Rs. 25 lakh - wherein the vol- energy by scaling up renewable energy,
greater clarity on capital infusion once ume fell by 16 per cent and by value developing green hydrogen, and stimu-
the full roadmap for reforms was 15 per cent YoY. Home loans of over Rs. lating climate finance for low-carbon
ready around October. 25 lakh rose 1 per cent by volume and energy investments," the World Bank
6 per cent by value. said.
A report by the independent expert
group co-chaired by former US trea- The First Low-Carbon Energy Program-
sury secretary Larry Summers and 15th Credit card dues cross Rs. matic Development Policy Operation -
Finance Commission chairman N K the first in a series of two envisaged
2 lakh crore
Singh has called for widening the man- operations - will support India in devel-
At nearly 30%, credit card dues have
date to deal with global public goods, oping green hydrogen, it added.
grown twice as fast as overall bank
such as climate change, increasing the
loans in a year. For the first time, credit
resources for poor and developing GST collection rises 12% to
card outstanding crossed the Rs 2-lakh-
countries by innovative financing
crore mark in April. over Rs. 1.61 lakh crore in
measures, tapping into private pool of
capital and increasing the equity Lenders say there are no major concerns June 2023
base by up to $100 billion. Singh told as the share of credit card dues remains The gross Goods and Services Tax (GST)
the FMs that the report had sought to small even as RBI has cautioned over revenue collected in June 2023 was Rs.
"establish more definite linkages be- the rise in unsecured bank credit. Ac- 1,61,497 crore, 12% higher than in the
tween mandate, finance, operating cording to RBI, credit card balances hit same month last year, according to
model, and congruency of the MDB Rs 2,00,258 crore in April 2023 - a 29. data released by the finance ministry.
system". 7% increase over April 2022.
Out of the gross GST collected, Central
The surge in credit card dues is not just Goods and Services Tax (CGST) com-
Unsecured loans jump due to rising indebtedness but is a re- prised Rs. 31,013 crore, State Goods
flection of their increased use for pay- and Services Tax (SGST) Rs. 38,292
47% in 2 years till March
ments and inflation. "The balance crore, Integrated Goods and Services
led by small-ticket lending sheet growth in credit cards is trend- Tax (IGST) Rs. 80,292 crore (including
Unsecured retail loans grew at a CAGR ing in line with the increase in con- Rs. 39,035 crore collected on import
(compounded annual growth rate) of sumer credit card spends. Over the last of goods) and cess Rs. 11,900 crore (in-
47 per cent from March 2021 to year, consumer spending has also gone cluding Rs. 1,028 crore collected on
March 2023 led by digital and up," said Sanjeev Moghe, president and import of goods).
IToriented small ticket lending, accord- head (cards & payments), Axis Bank.
The government has settled Rs. 36,224
ing to TransUnion CIBIL's Credit Mar-
crore to CGST and Rs. 30,269 crore to
ket Indicator (CMI) report.
World Bank approves Rs. SGST from IGST. The total revenue of
The report tracks credit market health Centre and the states in June 2023 af-
12,600 crore for India's
via parameters including demand, sup- ter regular settlement is Rs. 67,237
ply, consumer behaviour and perfor- clean energy transition crore for CGST and Rs. 68,561 crore
mance. The CMI for Q4 FY23 was at The World Bank said that it approved for SGST, said a finance ministry state-
102, up from 94 a year ago, further a $1.5 billion (around Rs. 12,600 crore) ment.

BANKING FINANCE | AUGUST | 2023 | 13