Skip to main content

Retail credit growth moderates to 16.6% in June 2024, shows RBI data

By

The retail loan growth declined to 16.6 per cent year-on-year (YoY) in June 2024 from 21.3 per cent a year ago, largely due to sharp moderation in credit in the personal loan segment.Reserve Bank of India (RBI) data showed that growth in the other personal loan category, which consists mainly of unsecured credit, fell sharply to 13.2 per cent YoY in June 2024 from 28.4 per cent in June 2023.However, credit growth to ‘housing,’ the largest constituent of the segment, accelerated to 18.2 per cent YoY from 14.8 per cent YoY. The credit growth numbers exclude the impact of the merger of HDFC with HDFC Bank.The RBI in its statement said non-food credit grew by 13.9 per cent in June 2024, down from 16.3 per cent in June 2023. Credit to industry inched up to 7.7 per cent YoY in June 2024 compared with 7.4 per cent a year ago. There was a slight improvement in credit to large industries at 6.9 per cent in June 2024 from 5.4 per cent a year ago.

 

Among major industries, while YoY growth in credit to food processing and infrastructure was higher in June 2024, credit growth in basic metal and metal products and textiles moderated, the RBI said.Credit growth to the services sector moderated substantially to 15.1 per cent YoY in June 2024 from 26.8 per cent a year ago, primarily driven down by lower credit growth in non-banking financial companies (NBFCs) and trade segments, the RBI said.Credit to NBFCs grew by 8.5 per cent YoY in June 2024, down sharply from 34.7 per cent a year ago. Credit to trade declined to 14.8 per cent from 18.5 per cent in June 2023.Credit growth to agriculture and allied activities remained robust at 17.4 per cent YoY in June 2024. However, it was lower compared with 19.7 per cent in June 2023, the RBI said.

 

-Business Standard 1st August, 2024.

Comments

Post a Comment

Popular posts from this blog

Credit card spending growth declines on RBI gaze, stress build-up

By
  Credit card spends have further slowed down to 16.6 per cent in the current financial year (FY25), following the Reserve Bank of India’s tightening of unsecured lending norms and rising delinquencies, and increased stress in the portfolio.Typically, during the festival season (September–December), credit card spends peak as several credit card-issuing banks offer discounts and cashbacks on e-commerce and other platforms. This is a reversal of trend in the past three financial years stretching to FY21 due to RBI’s restrictions.In the previous financial year (FY24), credit card spends rose by 27.8 per cent, but were low compared to FY23 which surged by 47.5 per cent. In FY22, the spending increased 54.1 per cent, according to data compiled by Macquarie Research.ICICI Bank recorded 4.4 per cent gross credit losses in its FY24 credit card portfolio as against 3.2 per cent year-on-year. SBI Cards’ credit losses in the segment stood at 7.4 per cent in FY24 and 6.2 per cent in FY23, the...
Post a Comment
Read more

SFBs should be vigilant, proactive to mitigate risks: RBI deputy guv

By
  The Reserve Bank of India’s Deputy Governor Swaminathan J on Friday instructed the directors of small finance banks (SFBs) to be vigilant and proactive in identifying emerging risks in the sector.Speaking at a conference for directors on the boards of SFBs, Swaminathan highlighted the role of governance in guiding SFBs towards sustainable growth with stability. He also emphasised the importance of sustainable business models.Additionally, he highlighted the need for strengthening cybersecurity to protect the entities against digital threats and urged for a stronger focus on financial inclusion, customer service, and grievance redressal to ensure a broader reach of banking services.Executive Directors S C Murmu, Rohit Jain, and R L K Rao, along with other senior officials representing the Supervision, Regulation, and Enforcement Departments of the RBI, also participated in the conference.   -  Business Standard  30 th  September, 2024
Post a Comment
Read more

Brigade Hotel Ventures files draft papers with Sebi for Rs 900 crore IPO

By
  Brigade Hotel Ventures Ltd, owner and developer of hotels in South India, has filed draft papers with capital markets regulator Sebi to raise Rs 900 crore through an initial public offering (IPO).The proposed IPO is entirely a fresh issue of equity shares with no Offer-for-Sale (OFS) component, according to the draft red herring prospectus (DRHP).Proceeds from the issue to the tune of Rs 481 crore will go towards payment of debt, Rs 412 crore will be allocated to the company and Rs 69 crore to its material subsidiary, SRP Prosperita Hotel Ventures Ltd.Additionally, Rs 107.52 crore will be used to purchase an undivided share of land from the Promoter, BEL, and the remaining funds will support acquisitions, other strategic initiatives, and general corporate purposes.The company may raise up to Rs 180 crore through a Pre-IPO Placement.   If the placement is undertaken, the issue size will be reduced.Brigade Hotel Ventures Ltd is a wholly-owned subsidiary of Brigade Enterprises ...
Post a Comment
Read more