While the pace of lending in the retail segment moderated slightly year-on year (Y-o-Y), the credit to services and agriculture and allied activities gathered further steam amid resilient economic growth.
The growth of the industrial segment, however, saw a sharp decline YoY across all three segments – micro and small, medium, and large industry, Reserve Bank of India data (RBI) showed.
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Coinciding with the kharif season during monsoon, the credit growth to agriculture and allied activities improved to 16.8 per cent Y-o-Y in July from 13.2 per cent a year ago.
The credit to industry grew 5.2 per cent Y-o-Y in July as compared with 10.5 per cent in July 2022, the RBI said in statement. The MSME segment grew 10.2 per cent in July, down from 27.9 per cent a year ago, and medium-size industry to 9.7 per cent from 37.5 per cent in July 2022.
The retail loans grew 18.4 per cent Y-o-Y in July (it was 18.7 per cent a year ago), supported by housing and vehicle loans. Housing credit grew by 13.1 per cent YoY in July against 16.1 per cent a year ago. Vehicle loans saw traction with 21.2 per cent YoY growth, up from 9.2 per cent.
The credit growth to the services sector accelerated to 19.4 per cent Y-o-Y in July from 16.7 per cent a year ago, primarily due to trade and commercial real estate. The trade segment showed 17.1 per cent growth in July against 14.2 per cent a year ago and commercial real estate pace accelerated to 12.3 per cent in July 2023 from 3.6 per cent a year ago.
House Price Index rises
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The all-India House Price Index (HPI) rose by 5.1 per cent in the April-June quarter of 2023-24 as compared with 3.4 per cent a year ago, according to data released by the RBI on Thursday. The RBI releases quarterly HPI based on transaction-level data received from the registration authorities in ten major cities.
The cities are Ahmedabad, Bengaluru, Chennai, Delhi, Jaipur, Kanpur, Kochi, Kolkata, Lucknow, and Mumbai.
)With PTI inputs)