Banks continue to rely on retail loans to boost their credit book: RBI data

Going by the events leading to the October board meeting and the proceedings of the last three meetings, it’s obvious that the government will not let loose the pressure to change the way the Indian central bank operates
Segregated data released by the Reserve Bank of India (RBI) shows that banks continue to rely on retail loans to boost their credit book. As on September 2018, segregated date for which has been released by the central bank, personal loans — which include housing, consumer durables, vehicles, education, credit cards and other personal loans — grew 17.37 per cent year-on-year as on September 2018. 

A year before, the growth was 18.49 per cent. However, banks are scaling back their exposure on consumer durables, though the base is also low. What the data indicates though is that banks are slowly restoring their confidence on the industry sector. 

While mining and quarrying saw a substantial jump of 31 per cent in credit disbursement, manufacturing continues to be in low single digits. Construction credit has seen some pick up after registering a de-growth in September 2017. Agriculture growth remains healthy at 14.32 per cent as on September last year. Bank credit growth (y-o-y) accelerated for the sixth successive quarter and stood at 13.8 per cent in September 2018. 

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