Bankers see revival in credit growth demand as rain gods smile

Recent data also suggested that the rural growth in the fast-moving consumer goods segment witnessed a fall below urban areas for the first time in seven years

Bankers are betting on a monsoon-aided revival in rural economic growth, as well as festive season demand, for a healthy credit growth, even as they might have consciously tightened their purse strings for unsecured personal loans fearing losses in a slowing economy. 

The non-food credit shrunk 1.2 per cent on a year-on-year basis, data released by the Reserve Bank of India (RBI) showed. Recent data also suggested that the rural growth in the fast-moving consumer goods (FMCG) segment witnessed a fall below urban areas for the first time in seven years. 

Bankers and economists, though, see it as a temporary