Bank Credit Growth

Banks' credit to industry grew by 8 per cent in October 2024 compared to 4.8 per cent in the year-ago period, according to the RBI data released on Friday. The Reserve Bank data also showed that credit to agriculture and allied activities registered a growth of 15.5 per cent year-on-year (y-o-y) in October 2024, compared to 17.4 per cent seen in the same month of last year. Among major industries, credit to 'chemicals and chemical products', 'petroleum, coal products and nuclear fuels', and 'all engineering' recorded a higher growth in October 2024 as compared to their respective growth rates a year ago. Personal loans growth decelerated to 15.8 per cent (y-o-y) in October as compared to 18 per cent recorded a year ago, largely due to decline in growth in 'other personal loans', 'vehicle loans' and 'credit card outstanding'. However, 'housing' -- the largest constituent of personal loans segment -- recorded an accelerated growth on year. RBI further said credit growth to services

Credit growth has exceeded deposit growth since the fortnight ended March 25, 2022, leading to a widening gap that reached as much as 700 basis points

Credit to NBFCs grew by 11.9 per cent Y-o-Y in August 2024, down sharply from 21.3 per cent a year ago. Credit to trade declined to 15.5 per cent from 17.4 per cent in August 2023

Credit up by 13.9% Y-o-Y as on Jun 28

Higher risk weights, base effect, deposit challenge may weigh on growth

Credit growth in agriculture and allied activities remained robust, reaching 20.1 per cent year-on-year in March 2024, up from 15.4 per cent in the corresponding month a year ago

According to the latest RBI data, outstanding loans to CRE stood at Rs 3.9 trillion as of February 23, 2024. It has grown almost by Rs 1 trillion in the past two years from Rs 2.94 trn in Feb 2022

The loan growth in agriculture and allied activities remained robust at 20.1 per cent YoY in February 2024, up from 15 per cent a year ago

Bank credit to industry grew 8.6 per cent year-on-year in February mainly due to accelerated pace of borrowing by sectors, like infrastructure and textiles, Reserve Bank of India (RBI) data released on Thursday revealed. Credit growth to agriculture and allied activities remained robust at 20.1 per cent in February compared to 15 per cent in the year-ago month, said the RBI's data on sectoral deployment of bank credit. Data on sectoral deployment of bank credit for February has been collected from 41 select commercial banks, accounting for about 95 per cent of the total non-food credit deployed by all lenders, the data showed. "Credit to industry grew by 8.6 per cent (year-on-year) in February 2024 as compared with 6.8 per cent in February 2023," the RBI said. Among major industries, the annual growth in credit to "food processing", "infrastructure", and "textiles" accelerated in February as compared with the corresponding month of the previous year, while that to "basic metal and

Growth in bank credit to industry decelerated to 7.8 per cent year-on-year in January compared to 8.7 per cent in the same month last year, according to Reserve Bank data released on Thursday. The RBI's data on 'Sectoral Deployment of Bank Credit January 2024' also showed that credit growth to agriculture and allied activities improved to 20.1 per cent (year-on-year) in January 2024 from 14.4 per cent a year ago. Among major industries, growth in credit to 'food processing' and 'textiles' accelerated in January 2024 against the corresponding month of the previous year, while that of 'basic metal & metal products' and 'chemicals and chemical products' decelerated. Further, bank advances to the services sector grew by 20.7 per cent in January 2024 against 21.4 per cent a year ago. Among major contributors, growth in credit to 'trade' improved, while that to 'non-banking financial companies (NBFCs)' decelerated year-on-year in January 2024. Also, personal loan growth moderated to ..

Lagging deposit accretion poses the risk of constraining credit growth for banks in FY25, India Ratings and Research said on Thursday. Maintaining its "neutral" outlook on the banking sector for FY25, the agency said the deposit growth is likely to moderate to 12-13 per cent in FY25 from the 13.8 per cent estimated for ongoing fiscal year. The loan-to-deposit ratio for the sector is at a five-year high of 81 per cent, which makes deposit growth as a crucial part in banks' credit book expansions, it said. The agency said it expects credit growth to come at 20.5 per cent in FY24, including the positive impact of the HDFC twins merger, and added that the same number will come at over 15 per cent in FY25. The loan book mix for banks is likely to change in FY25 due to the dip in shares of exposures to the retail and non-bank lenders segments, the agency said, adding that a revival in private capex will help increase the share of corporate lending in the overall pie. "The improving retu

Reflecting a robust economic growth, bank credit grew 16 per cent year-on-year (Y-o-Y) till January 12 in the current financial year against 16.5 per cent growth last year

Sequentially, it grew by 0.09 per cent over the previous fortnight ended December 29, 2023. The outstanding credit stood at Rs 154.04 trillion as of January 12, 2024, according to RBI data

Looking ahead, weaker export demand in certain sectors, softer commodity prices, and challenges in deposit mobilisation could temper bank credit growth in FY25, Gupta said

Growth of bank credit to industry decelerated to 6.1 per cent in November as against 13 per cent recorded in the same month last year, according to data released by the Reserve Bank of India (RBI) on Friday. Among major industries, year-on-year credit growth to basic metal & metal products, food processing and textiles accelerated in November 2023 as compared with the corresponding month of the previous year, while that to all engineering, chemicals & chemical products, and infrastructure decelerated. On the other hand, credit growth to agriculture and allied activities accelerated to 18.2 per cent in November from 14 per cent a year ago. According to the data on "Sectoral Deployment of Bank Credit -- November 2023", personal loan growth decelerated to 18.6 per cent (y-o-y) in November (19.9 per cent a year ago), due to moderation in credit growth to housing. Credit to the services sector grew 21.9 per cent in November as against 21.3 per cent a year ago. Credit growth to ...

"Margins under pressure due to rising interest rates plus increase in the operating expenditure on revision in salaries. Despite this, banks' profitability will remain robust"

Tight liquidity, hike in risk weights to impact bank loan growth

Growth in wholesale credit, which makes up to 60% of overall credit, is likely to slow to 11-11.5% this year from a decadal high of 15% last year

RBI released the Scheduled Banks' Statement of Position in India as of September 8, 2023

Bank deposits have gone up by 6.6 per cent to reach Rs 149.2 trillion during the April-August 2023 period, whereas the credit growth for the same period was 9.1 per cent