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Retail credit swells on festive demand

Source : BUSINESS_STANDARD
Last Updated: Mon, Dec 31, 2012 19:12 hrs

The reduction in interest rates by banks on home loans and car loans in the festive season has resulted in retail credit growing 16.3 per cent year-on-year in November, the highest for a month in this financial year. Many banks had also waived or reduced processing fees. The rise was 14.1 per cent in October and 13.3 per cent in November 2011. Vehicle loans grew 25.8 per cent compared with 22.2 per cent in October. Housing loans grew 13.2 per cent, compared with an October rise of 12.1 per cent.

Credit to industry increased 17.7 per cent in November, compared with 15.2 per cent in October. However, it had grown 20.9 per cent in November 2011.

Deceleration in credit growth to industry was observed in all major sub-sectors, barring mining and quarrying, food processing, wood and wood products, paper and paper products, petroleum, coal products and nuclear fuels, chemicals and chemical products, cement and cement products, and all engineering segments.

Credit to the services sector increased 15.3 per cent in November. It had increased by 13.7 per cent in October. The growth was 17.2 per cent in November 2011.

Credit to non-banking finance companies (NBFCs) increased 30.3 per cent in November. It had increased by 27.9 per cent in October and at 39.2 per cent in November 2011. Credit to agriculture increased by 24.4 per cent in November compared with 22.9 per cent the previous month. It had grown by 7.3 per cent in November 2011.




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