The credit growth of housing, which is the largest constituent of the personal loan segment has increased by 16.9 per cent (Rs 3.40 lakh crore) to reach Rs 23.49 lakh crore. Last year, this growth was 13.8 per cent at Rs. 20.09 lakh crore.
Personal loan segment growth moderated
Meantime, the growth in overall personal loans moderated to 17.8 per cent year-on-year in May 2024, which was 19.1 per cent a year ago. The moderate growth is ascertained to other loans which decelerated.
As per the RBI data, the credit card outstanding rose by 26.2 per cent (Rs 55,000 crore) to Rs 2.67 lakh crore in May 2024 against a growth of 31.5 per cent at Rs 2.12 lakh crore which was marked a year ago. Moreover, a growth of 16.2 per cent to Rs 162.30 lakh crore in May this year has been witnessed by the non-food bank credit.
Credit to industries swelled
Apart from that, the bank credit to industries has registered a growth of 8.9 per cent and reached Rs 36.87 lakh crore as compared to 6.0 per cent in May last year.
Among the industries, outstanding for large industries registered a 7.1 per cent growth to Rs 26.53 lakh crore, while for medium enterprises and micro and small industries, it has grown by 15.5 per cent each to Rs 3.13 lakh crore and Rs. 7.36 lakh crore respectively.
Agriculture credit growth augmented, service sector intact
In addition to these, credit growth to agriculture and allied activities augmented to 21.6 per cent (y-o-y) to reach Rs 21.39 lakh crore in May 2024 from 16.0 per cent a year ago.
Furthermore, the RBI data reveals that credit growth to the service sector has been robust at 20.7 per cent in May 2024 as it was 21.3 per cent a year ago. RBI has suggested that it has been supported by improved credit growth in professional services, commercial real estate, and transport operators. Meanwhile, credit growth to non-banking financial companies (NBFCs) has decelerated in May 2024 as compared to May 2023.
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