Retail trade and NBFCs drive credit growth in services: RBI data

Retail trade, NBFCs drive credit growth in services

Robust offtake from retail and non-banking financial companies (NBFCs) increased credit to services by 21.5 per cent year-on-year (YoY) in January 2023 as against 5.7 per cent a year ago.

The Reserve Bank of India (RBI) data showed loans to retail increased 21.8 per cent YoY in January 2023, up from the 6.9 per cent in January 2022.

Loans to NBFCs grew by 31 per cent as against 9.9 per cent a year ago. NBFCs lend in segments like retail; micro, small and medium enterprises; and farming, besides giving micro loans.

Credit to households and individuals, reflecting the fund flow