Loan growth of pvt bks moderates in Oct-Dec on high interest rates

The growth in loans by private sector banks in the December quarter moderated from a quarter ago, as per provisional figures released by five banks. The fall in loan growth could be attributed to base effect and rising interest rates, analysts said.

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Among private sector banks, Federal Bank, South Indian Bank, Karur Vysya Bank, Dhanlaxmi Bank and CSB Bank have declared their provisional numbers for the reporting quarter so far.

"The base impact as well as the increase in the systemic rates will start reflecting on the loan books as well. So, I think it is a combination of multiple things," said Prakash Agarwal, former head of financial institutions at India Ratings.