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India’s Bank Credit Growth Slows to 9.8% With Lending Easing Across Sectors

Reserve Bank of India data from 41 major banks shows credit growth at 9.8%, about half last year’s pace, with broad-based slowdown across industry, agriculture, services, personal loans.

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Overview

  • Overall bank credit growth slowed to 9.8% in the fortnight to May 16, down from 19.5% in the same period last year.
  • Industry lending eased to 6.7% in the fortnight to April 18 compared with 6.9% a year earlier, with infrastructure credit lagging despite stronger borrowing in metals, engineering and textiles.
  • Non-food credit growth dipped to 11.2% from 15.3% a year ago, driven by a fall in agricultural loans to 9.2% and services credit deceleration to 11.2% as NBFC borrowing waned.
  • Personal loan growth moderated to 14.5% year-on-year as vehicle and other personal loans slowed and credit card outstanding rose 10.6% versus 23%.
  • Gold loans bucked the slowdown, jumping 119.6% to Rs 2.23 lakh crore, based on RBI data from 41 banks covering about 95% of non-food credit.