Consumer durables and credit card loans grow in October

As per RBI consumer durable loans increased by 53.2% in the month of October where as credit card outstanding grew by 26%

Retail loans continue to grow even though the overall credit in the system continues to grow at a tepid pace. In the month of October, consumer durables and credit cards continued to grow at a healthy pace because of the festival season.

According to Reserve Bank of India (RBI) data, consumer durables loans increased by 53.2 per cent in October whereas credit card outstanding grew by 26 per cent. At the same time, non-food bank credit increased only 8.3 per cent, compared with an increase of 11.1 per cent in October 2014. Credit to agriculture and allied activities also witnessed an increase of 11.1 per cent in October 2015, compared with the increase of 20.3 per cent a year ago. “Credit to industry increased by 4.6 per cent in October 2015 as compared with the increase of 7.8 per cent in October 2014. Deceleration in credit growth to industry was observed in all major sub-sectors barring chemical and chemical products and vehicles, vehicle parts and transport equipment,” RBI said in a notification.