FINANCE TIP OF THE DAY
Can you afford your loan?!
Know the quantity of loan you can afford. The banks may sanction loan based on your income but you should look at your monthly expenditure and see if you can afford the maximum that banks offer. As a thumb rule, remember not to let your credit exceed 40% of your income!
ICICI Bank has recorded an increase in its profit
A recent press report said that improved asset quality and loan growth has boosted the net profit of ICICI Bank. The bank has recorded a net profit of 21.6 percent in the second quarter and has broken the market forecast. As per the resulted of the second quarter the bank The has seen an increase in the net profit from Rs 1236 crore to Rs 1503.2 crore.
Reports said that the interest income for the bank had increased to Rs 2506 crore from Rs 2204 crore. The non-performing assets of the bank fell to 0.93 percent in the same month. The credit growth of the Indian banks is in a declining stage due to hike in interest rate especially the hike in rates of car and home loan. The Reserve Bank of India has raised the interest rates.
RBI has estimated the credit growth of the bank to about 18 percent. Reports said that the reason for the slowdown in credit growth was due to the tightening steps taken by the central bank. The investors and corporate officials have asked the RBI to stop its hike in policy rates for sometime.