 "Loan growth slows across sectors, barring retail")
The deceleration in credit growth was observed in all major sectors for the month of June except for personal loans, according to Reserve Bank of India (RBI) data released on Monday.
On a year-on-year basis, personal loans increased by 15.6 per cent in June as compared with the increase of 13.9 per cent in June 2012.
Banks have been focusing a lot on retail loans in a scenario when corporate credit growth remains muted.
On a year-on-year (y-o-y) basis, non-food bank credit increased by 13.4 per cent in June as compared with the increase of 18.2 per cent in June 2012. The first half of the financial year is generally slow in terms of credit growth. This financial year however, a slowdown is also being attributed to economic growth coming down.
Credit to industry increased by 14.1 per cent in June as compared with the increase of 20.7 per cent in June 2012. Deceleration in credit growth to industry was observed in all major sub-sectors, barring food processing, textiles, leather & leather products, cement & cement products and infrastructure. Credit to agriculture increased by 9.9 per cent in June, as compared with the increase of 15.5 per cent in June 2012. Credit to the services sector increased by 12.1 per cent in June as compared with the increase of 18.6 per cent in June 2012.
The non-banking finance companies sector recorded a credit growth of 1.9 per cent in June as compared with the increase of 43.9 per cent in June 2012.
On a year-on-year basis, personal loans increased by 15.6 per cent in June as compared with the increase of 13.9 per cent in June 2012.
Banks have been focusing a lot on retail loans in a scenario when corporate credit growth remains muted.
On a year-on-year (y-o-y) basis, non-food bank credit increased by 13.4 per cent in June as compared with the increase of 18.2 per cent in June 2012. The first half of the financial year is generally slow in terms of credit growth. This financial year however, a slowdown is also being attributed to economic growth coming down.
Credit to industry increased by 14.1 per cent in June as compared with the increase of 20.7 per cent in June 2012. Deceleration in credit growth to industry was observed in all major sub-sectors, barring food processing, textiles, leather & leather products, cement & cement products and infrastructure. Credit to agriculture increased by 9.9 per cent in June, as compared with the increase of 15.5 per cent in June 2012. Credit to the services sector increased by 12.1 per cent in June as compared with the increase of 18.6 per cent in June 2012.
The non-banking finance companies sector recorded a credit growth of 1.9 per cent in June as compared with the increase of 43.9 per cent in June 2012.
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%