Bank credit growth slows in Q2; personal loans maintain double-digit growth

Banks continued to depend on personal loans for credit growth in the September quarter (July-September, or Q2), showed the data released by the Reserve Bank of India (RBI) on Friday. While bank credit grew only 5.4 per cent in Q2 on a year-on-year (YoY) basis, personal loans, accounting for one fourth of the credit, continued to maintain double-digit growth.

  

Credit had grown 5.7 per cent in the previous quarter. Industrial credit, however, contracted 1.7 per cent YoY and its share in total credit was nearly 30 per cent at the end of the quarter.

Credit growth in metropolitan branches of banks decelerated