Bank Credit Growth and Loan Trends

Bank Credit Growth and Loan Trends

Sub: Eco

Sec: Monetary Policy 

• Overall Bank Credit Growth
  • Decline in Growth: Reduced to 13.9% as of June 30, 2024, from 16.3% in June 2023.
  • Non-Food Credit: Total stands at ₹163.46 lakh crore.
• Credit Card Outstanding
  • Increase: Up by ₹51,000 crore to ₹273,044 crore.
  • Growth Rate: Slowed to 23.3% from 37.6% a year ago.
• Gold Loans
  • Significant Increase: Grew by 30.5% to ₹123,776 crore from ₹94,872 crore.
  • Attributed to the rise in gold prices prompting more pledges.
• Personal Loan Segment
  • Growth Rate: Slowed to 16.6% (₹50.91 lakh crore) from 21.3% a year ago.
  • Housing Loans: Accelerated growth at 18.2% to ₹24.27 lakh crore from ₹20.52 lakh crore.
• Impact of RBI Measures
  • Risk Weights: Increased by 25% on unsecured loans, credit card receivables, and NBFCs.
  • Aimed at mitigating risks in these segments.
• Sectoral Credit Growth
  • Agriculture & Allied Activities: Remained robust at 17.4%, though down from 19.7%.
  • Industry Credit: Grew at 7.7% to ₹37.12 lakh crore, slightly up from 7.4%.
  • Services Sector: Substantial moderation to 15.1% from 26.8%, primarily due to slower growth in NBFCs and trade.
• Deposit Growth
  • Absolute Growth: Deposits expanded by ₹23.9 lakh crore over the last 12 months, reaching ₹211.8 lakh crore as of July 12, 2024.
  • Deposit Growth: Expected to remain prominent in FY25, with banks intensifying efforts to strengthen their liability franchises.