Overview

• Data from 41 major banks covering about 95% of non-food credit showed year-on-year growth slowed from 16.2% to 9.8% for the fortnight ended May 30.
• Lending to non-banking financial companies fell 0.3%, marking the first contraction in 44 months and underscoring stress in the NBFC sector.
• Industry credit expansion eased to 4.9% from 8.9% a year ago, while services and agricultural lending moderated to 9.4% and 7.5%, respectively.
• Growth in personal loans decelerated to 13.7% amid slower uptake of vehicle loans, credit cards and other consumer finance products.
• Banks continued to boost lending to the computer software segment and to key industries such as engineering, construction and rubber and plastics.