- 01 Feb 2022
- ICICIdirect Research
BUDGET 2023- IMPACT ON BFSI SECTOR
• Most important announcement for banking sector has been the focus on capex. Credit requirement from industry is expected to boost credit growth from banks
• Digital focus stays with RBI to launch India’s official digital currency using the blockchain technology in FY22-23. Any gains in case of transfer of virtual/digital assets will be taxed at 30%. Also, TDS of 1% to be deducted on payments made for such assets above certain threshold
• ECLGS scheme extended till March 2023 to benefit business growth for MSME focused banks and NBFCs
• On the flip side, the impact of higher fiscal deficit and borrowing led bond yields to surge 15-20 bps. Accordingly, treasury gains were impacted negatively, particularly for PSU banks
• Focus on affordable housing segment continues with allocation of Rs 48000 crore for PM housing scheme bodes well for growth in secured portfolio of large banks and HFCs