Bank lending slowed across sectors- industry, services, retail and agriculture in December due to a general slowdown in demand, data on `Sectoral deployment of bank credit’ released by the Reserve bank of India showed.
But one segment in retail segment, loans against gold jewellery jumped 71 percent year-on-year ( y-o-y) as surging gold prices made it possible for banks to offer higher amounts for the same quantity of gold pledged. Significantly in absolute terms these loans have doubled in two years to Rs 1.72 lakh crore as of end December 2024 from Rs 86,000 crore as of end December 2022.
Non-food bank credit as on the fortnight ended December 27, 2024 grew at 12.4 per cent y-oy as compared to 15.8 per cent for the corresponding fortnight of the previous year (December 29, 2023).
Lending to industry rose 7.4 per cent y-o-y as on the fortnight ended December 27, 2024, compared with 7.5 per cent for the corresponding fortnight of the previous year. Among major industries, outstanding credit to ‘food processing’, ‘petroleum, coal products and nuclear fuels’, and ‘all engineering’ recorded a higher growth. However, credit growth in the infrastructure segment decelerated.
Retail credit growth moderated to 14.9 per cent y-o-y as on the fortnight ended December 27, 2024 as compared with 17.6 per cent a year ago, largely due to decline in growth in ‘other personal loans’ or unsecured loans, ‘vehicle loans’ and ‘credit card outstanding’. However, ‘housing’ – the largest constituent of this segment – recorded accelerated growth on y-o-y basis.
Credit growth to services sector moderated to 13.0 per cent y-o-y as on the fortnight ended December 27, 2024 (20.0 per cent for the corresponding fortnight of the previous year), primarily due to decelerated growth in credit to ‘non-banking financial companies’ (NBFCs) and trade segments. However, credit growth (y-o-y) to ‘computer software’ and ‘professional services’ accelerated.
Credit to agriculture and allied activities registered a growth of 12.5 per cent y-o-y as on the fortnight ended December 27, 2024 (19.4 per cent for the corresponding fortnight of the previous year).
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Non-food bank credit as on the fortnight ended December 27, 2024 grew at 12.4 per cent y-oy as compared to 15.8 per cent for the corresponding fortnight of the previous year (December 29, 2023).
Lending to industry rose 7.4 per cent y-o-y as on the fortnight ended December 27, 2024, compared with 7.5 per cent for the corresponding fortnight of the previous year. Among major industries, outstanding credit to ‘food processing’, ‘petroleum, coal products and nuclear fuels’, and ‘all engineering’ recorded a higher growth. However, credit growth in the infrastructure segment decelerated.
Retail credit growth moderated to 14.9 per cent y-o-y as on the fortnight ended December 27, 2024 as compared with 17.6 per cent a year ago, largely due to decline in growth in ‘other personal loans’ or unsecured loans, ‘vehicle loans’ and ‘credit card outstanding’. However, ‘housing’ – the largest constituent of this segment – recorded accelerated growth on y-o-y basis.
Credit growth to services sector moderated to 13.0 per cent y-o-y as on the fortnight ended December 27, 2024 (20.0 per cent for the corresponding fortnight of the previous year), primarily due to decelerated growth in credit to ‘non-banking financial companies’ (NBFCs) and trade segments. However, credit growth (y-o-y) to ‘computer software’ and ‘professional services’ accelerated.
Credit to agriculture and allied activities registered a growth of 12.5 per cent y-o-y as on the fortnight ended December 27, 2024 (19.4 per cent for the corresponding fortnight of the previous year).
