Personal loans account for 96% of new bank loans during FY18: RBI data

A slump in fresh investment by corporate sector key reason

Krishna Kant Mumbai
Personal loans account for 96% of new bank loans during FY18: RBI data

In a first, personal loans are set to account for most of incremental growth in non-food bank credit during 2017-18. 
According to the Reserve Bank of India (RBI) data on sectoral deployment of bank credit, personal loans, which include home, vehicle and education loans, accounted for a record 96 per cent of incremental non-food credit in the last financial year till February 16. This is more than double their share in incremental bank credit growth in the previous two years.
Personal loans accounted for 41.6 per cent and 41.5 per cent of incremental credit growth during FY17 and FY16, respectively, (see the adjoining chart). Sectoral RBI data for all of FY18 is not available yet. 

Also Read

News digest: Battle for Essar Steel, TCS Q4 results, cash crunch, and more

Credit to MSME rises amid muted growth; personal loans jump 20.4% in Feb

Credit to industry falls in September

Industry credit grows for first time this year in November

FY18 fiscal deficit to be below revised target as govt gets RBI, FCI boost

IndusInd Q4 net up 26% at Rs 9.5 bn; divergence seen with RBI on NPA data

Some MPC members doubt if growth would be sustainable: RBI minutes

190 mn Indian adults don't have bank account, says World Bank report

Urjit Patel, most MPC members signal shift to hawkish stance: RBI minutes

Cash crunch: Bank unions threaten agitation, blame RBI, govt for shortage

First Published: Apr 20 2018 | 6:58 AM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on are available only to BS Premium subscribers. Already a BS Premium subscriber?LOGIN NOW

Register to