RBI Data
Credit growth to services sector continues to fall as loans to NBFCs dwindle
This story was originally published at 21:36 IST on 31 December 2024
Register to read our real-time news.Informist, Tuesday, Dec. 31, 2024
MUMBAI – Credit to the services sector continued to fall in November, moderating to 14.4% in the fortnight ended Nov. 29, from 22.2% in the corresponding fortnight of the previous year, data from the Reserve Bank of India showed. The fall was primarily on account of lower growth in credit to non-banking financial companies and the trade segment. However, credit growth to commercial real estate and computer software accelerated.
The fall in credit growth to NBFCs can also be attributed to the RBI's decision to increase risk weights on banks' loans to the sector. On yearly basis, non-food bank credit for the fortnight ended Nov. 29 grew 11.8%, compared with 16.5% for the corresponding fortnight of the previous year.
Personal loans, another area of concern for the RBI, rose 16.3% in the fortnight ended Nov. 29, compared with the 18.7% growth last year. The fall in personal loans can be largely attributed to a decline in growth in other personal loans, vehicle loans and credit card outstanding. However, housing--the largest constituent of this segment--recorded accelerated growth, the RBI's data showed.
Credit to agriculture and related activities saw a rise of 15.3% as of the fortnight ended Nov. 29, compared with 18.1% for the same fortnight last year. Credit growth for the industrial sector stood at 8.1% for the same period, in contrast to 5.5% for the corresponding period in the previous year. Among sectors, financing for chemicals and chemical products, infrastructure, petroleum, coal products and nuclear fuels, and all engineering showed increased growth. End
Reported by Kabir Sharma
Edited by Akul Nishant Akhoury
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2024. All rights reserved.
To read more please subscribe
Share this Story:
