You are here: Home » Economy & Policy » News
Business Standard

Retail credit growth moderates after seeing a jump in July, shows data

The outstanding retail loan book stood at Rs 25.48 trillion in August, up from Rs 25.31 trillion in July.

Topics
Retail credit

Abhijit Lele  |  Mumbai 

money, cash, investment, stocks, tax, funds, investors, investment, shares

activity covering housing, credit cards and the vehicle segment moderated in August 2020 over the previous month.

Retail loans grew by Rs 16,879 crore in August while it had grown by Rs 40,853 crore in July, according to Reserve Bank of India (RBI) data. Retail loans had grown by Rs 11,518 crore in June.

These critical categories saw a slowdown. Housing loans rose by just Rs 1,936 crore in August (Rs 11,663 crore in July), and credit card outstanding was also up by Rs 3,442 crore (Rs 3,805 crore in July). The vehicles segment also saw a marginal rise of Rs 2,072 crore (Rs 3,095 crore).

The outstanding retail loan book stood at Rs 25.48 trillion in August, up from Rs 25.31 trillion in July.

had seen a sharp drop of Rs 62,861 crore in April followed by moderate contraction of Rs 11,928 crore in May.

Economic activity and credit expansion were severely hit in April due to stringent nationwide lockdown to contain the Covid pandemic. May was also marked by very dull activity. June and July have shown upward trajectory. The strength of recovery is gradually building up, bankers said.

chart

The micro and small enterprises (MSME) segment saw a contraction of Rs 182 crore in outstanding loans. Loans to medium-sized units rose by Rs 1,936 crore. The outstanding loan to small and medium enterprises (SMEs) stood at Rs 3.54 trillion in August (Rs 3.54 trillion in July).

On a year-on-year (y-o-y) basis, non-food bank credit growth decelerated to 6 per cent in August from 9.8 per cent in August 2019.

Credit to agriculture and allied activities increased by 4.9 per cent in August 2020 compared to a growth of 6.8 per cent in August 2019.

Credit growth to industry decelerated to 0.5 per cent in August this year from 3.9 per cent in the same month last year.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Thu, October 01 2020. 01:16 IST
RECOMMENDED FOR YOU
.