As of July’s end, credit card dues emerged as the fastest-growing sector among those accounting for over 1% of total bank loans, increasing 22% year-on-year to nearly Rs 2.8 lakh crore, ToI reported on September 2. Loans against gold jewellery, however, grew the fastest within personal loans, rising by 39%, the report (by Mayur Shetty) said.
Personal loans captured the largest share of non-food credit at 32.9%, followed by services at 27.4%, industry at 22.2%, and agriculture and allied activities at 12.8%.
According to RBI’s sectoral data on bank credit, personal loans grew by 14.4%, reaching nearly Rs 55.3 lakh crore. Credit to agriculture and allied activities also saw an 18.1% increase, totaling about Rs 21.6 lakh crore. Despite a slower growth rate, home loans, the largest segment in personal loans, still contributed significantly to the overall category’s growth.
“Outstanding credit card balances grew 22% year-on-year to nearly Rs 2.8 lakh crore.”
Personal loans showed a faster growth rate than industry loans, which grew by 13.7%. The slower growth rate of 12.8% in home loans took the outstanding amount to Rs 28.1 lakh crore.
Credit card dues were a noteworthy factor in this growth. Loans against gold jewellery, though constituting only 0.8% of total bank credit, grew at a rapid pace of 39%.
The data highlights personal loans as a major driver of credit growth, while agriculture and allied activities also reported considerable increases.
