Personal Loans Growth Moderated To 17.8% In May

Sectoral Deployment of Bank Credit – May 2024

FinTech BizNews Service

Mumbai, June 28, 2024: Data on sectoral deployment of bank credit for the month of May 2024 has been collected from 41 select scheduled commercial banks, accounting for about 95 per cent of the total non-food credit deployed by all scheduled commercial banks.

On a year-on-year (y-o-y) basis, non-food bank credit registered a growth of 16.2 per cent in May 2024 as compared with 15.5 per cent a year ago.

Highlights of the sectoral deployment of bank credit are given below:

• Credit growth to agriculture and allied activities accelerated to 21.6 per cent (y-o-y) in May 2024 from 16.0 per cent a year ago.
• Credit to industry grew by 8.9 per cent (y-o-y) in May 2024 as compared with 6.0 per cent in May 2023. Among major industries, credit growth (y-o-y) to ‘all engineering’, ‘chemicals and chemical products’, ‘food processing’, ‘infrastructure’, and ‘textiles’ accelerated in May 2024. However, credit growth to ‘basic metal and metal product’ and ‘petroleum, coal products and nuclear fuels’ decelerated.
• Credit growth to services sector was robust at 20.7 per cent (y-o-y) in May 2024 (21.3 per cent a year ago), supported by improved credit growth in ‘commercial real estate’ ‘transport operators’ and ‘professional services’. Credit growth to ‘non-banking financial companies (NBFCs)’ however, decelerated in May 2024 as compared with May 2023.
• Personal loans growth moderated to 17.8 per cent (y-o-y) in May 2024 from 19.1 per cent a year ago, primarily due to decelerated growth in ‘other personal loans’. Credit growth to ‘housing’, the largest constituent of the segment, accelerated.