While the pace of lending in the retail segment moderated slightly year-on year (Y-o-Y), the credit to services and agriculture and allied activities gathered further steam amid resilient economic growth.
The growth of the industrial segment, however, saw a sharp decline YoY across all three segments – micro and small, medium, and large industry, Reserve Bank of India data (RBI) showed.
Coinciding with the kharif season during monsoon, the credit growth to agriculture and allied activities improved to 16.8 per cent Y-o-Y in July from 13.2 per cent a year ago.
The credit to industry grew 5.2 per cent Y-o-Y in July as compared with 10.5 per cent in July 2022, the RBI said in statement. The MSME segment grew 10.2 per cent in July, down from 27.9 per cent a year ago, and medium-size industry to 9.7 per cent from 37.5 per cent in July 2022.
The retail loans grew 18.4 per cent Y-o-Y in July (it was 18.7 per cent a year ago), supported by housing and vehicle loans. Housing credit grew by 13.1 per cent YoY in July against 16.1 per cent a year ago. Vehicle loans saw traction with 21.2 per cent YoY growth, up from 9.2 per cent.
The credit growth to the services sector accelerated to 19.4 per cent Y-o-Y in July from 16.7 per cent a year ago, primarily due to trade and commercial real estate. The trade segment showed 17.1 per cent growth in July against 14.2 per cent a year ago and commercial real estate pace accelerated to 12.3 per cent in July 2023 from 3.6 per cent a year ago.
Also Read
More IPOs need to deliver listing pop to revive retail interest: Analysts
What are cashback credit cards? Which are the best ones? How to pick?
Retail inflation eases marginally to 6.44% in February from 6.52% in Jan
Your credit card payments overseas will attract a 20% TCS from July 1
HDFC Bank's premium co-branded credit card with Marriot: Is it worth it?
Govt extends last date for applications under textiles PLI till Oct
India's agri growth reaps harvest of rabi at 3.5% in June quarter
India's core sector output slowed to 8% in July 2023, shows govt data
India's GDP uptick for economic heavy-weights, shows OECD data
India's Russia oil imports fall to 7-mth low, Saudi jumps, shows trade flow
House Price Index rises
The all-India House Price Index (HPI) rose by 5.1 per cent in the April-June quarter of 2023-24 as compared with 3.4 per cent a year ago, according to data released by the RBI on Thursday. The RBI releases quarterly HPI based on transaction-level data received from the registration authorities in ten major cities.
The cities are Ahmedabad, Bengaluru, Chennai, Delhi, Jaipur, Kanpur, Kochi, Kolkata, Lucknow, and Mumbai.
)With PTI inputs)