Economic uptick boosts credit offtake beyond 20% in retail, services

The rise in credit was largely driven by housing and vehicle loans segments

The credit offtake remained robust across sectors — farming, industry, services, and retail — in October, the start of a busy season, on increased demand amid economic upturn and festivals.

Credit growth on a year-on-year (YoY) basis in the retail segment -- comprising households and individuals -- and the services sector crossed the 20 per cent mark. Retail loans expanded by 20.2 per cent in October 2022, against 12.6 per cent a year ago. The rise in credit offtake was largely driven by the housing and vehicle loans segments.

Reserve Bank of India (RBI) data showed that credit to the