Banks’ non-food credit grew by nearly 21% year-on-year (y-o-y) to Rs 155.80 trillion as of November 17, higher than 20% last month, Reserve Bank of India’s (RBI) sectoral deployment of credit data showed on Friday. Excluding the merger of HDFC twins, banks registered credit growth of 16%, the data showed.
During November, banks’ credit to agriculture and allied sector grew 18% y-o-y to Rs 19.31 trillion, higher than 14% growth registered in corresponding period of previous fiscal. Lenders’ loans to industry segment grew 7% y-o-y to Rs 36 trillion, lowerthan 13% growth registered last year.
Personal loans, meanwhile, grew 30% y-o-y to Rs 50.56 trillion. Housing loans accounted for Rs 25.94 trillion of overall personal loans, registering a growth of 37% during November.
While pace of loan growth in consumer durable segment weakend to 11% during the reporting period from 33% last year, credit card loans continued rising at a faster pace of 34%, higher than 26% last year.
The RBI’s latest sectoral data measures banks’ credit growth till November 17 and does not consider the impact of regulator’s hike in risk weights on unsecured loan segment, which were announced on November 16.
Analysts are of the view that data from hereon will show moderation in banks’ personal loans and NBFC credit.
According to a report by ICRA ratings, banks’ credit growth is expected to moderate to 12%-13% in FY25, driven by demand in the services and the retail segments.