Housing loans accelerated both including and excluding the merger impact of HDFC with HDFC Bank by 36.3 percent and 18.2 percent respectively compared to 14.8 percent in the same period a year ago..
Among major industries, while y-o-y growth in credit to ‘chemicals and chemical products’, ‘food processing’ and ‘infrastructure’ was higher in June 2024, credit growth to ‘basic metal and metal product’, ‘petroleum, coal products and nuclear fuels’ and ‘textiles’ moderated.
Retail loans growth was lower at 16.6 per cent (y-o-y) in June 2024 as compared to 21.3 per cent a year ago, largely due to moderation in growth of unsecured loans and ‘advances against fixed deposits’. But lending to ‘housing’, the largest constituent of the segment, accelerated. Also gold loans grew by 30.5 percent compared to 19.3 percent in the same period
Credit growth to the services sector moderated substantially to 15.1 per cent (y-o-y) in June 2024 from 26.8 per cent a year ago, primarily driven down by lower credit growth in ‘non-banking financial companies (NBFCs)’ and ‘trade’ segments, RBI said .Credit growth to agriculture and allied activities remained robust at 17.4 per cent (y-o-y) in June 2024, however, it was lower compared with 19.7 per cent a year ago, RBI saidOn a year-on-year (y-o-y) basis, non-food bank credit2 registered a growth of 13.9 per cent in June 20243 as compared with 16.3 per cent a year ago due to unfavourable base effect, RBI said. However, market experts also attribute this slowdown to holding back borrowing decisions due to an uncertainty of outlook due to elections then.
