RBI data shows retail credit grew by 15.1% y-o-y in December

A 43.6% growth in loans for consumer durables was seen y-o-y in December 2014, compared to 33.4% growth a year ago

The retail credit segment saw a slower growth of 15.1 per cent  year-on-year (y-o-y) in December, compared to 15.8 per cent growth a year ago. This was fuelled by slower growth in vehicle loans, education loans and home loans.

A 43.6 per cent growth in loans for consumer durables was seen y-o-y in December 2014, compared to 33.4 per cent growth a year ago.

According to the Sectoral Deployment of Bank Credit data (December 2014) released by the Reserve Bank of India (RBI), in retail credit, vehicle loans grew by 15.5 per cent y-o-y, registering a slower growth than what was seen last year.

Housing loans grew 16 per cent. Education loans grew 6.3 per cent, since the December period is generally considered a lean season for admissions to higher education institutes.

On a y-o-y basis, non-food bank credit increased by 9.8 per cent in December 2014 as compared with an increase of 14.8 per cent in December 2013. Credit to agriculture and allied activities increased 18.3 per cent in December 2014, up from 11.5 per cent in December 2013.

RBI data showed credit to industry increased 6.8 per cent in December 2014 as compared with an increase of 14.1 per cent in December 2013. Deceleration in credit growth to industry was observed in all major sub-sectors, barring construction, beverages and tobacco, gems and jewellery and mining and quarrying.

Credit to the services sector increased 6.9 per cent in December 2014 as compared with an increase of 17.4 per cent in December 2013, with deceleration observed in all major sub-sectors, barring commercial real estate. Credit to NBFCs increased by 3.3 per cent in December 2014 as compared with an increase of 15.1 per cent in December 2013.