MUMBAI: The year-on-year growth in bank credit to non-banking finance companies has decreased sharply to 8.5% as of June 2024. However, credit card outstanding and gold jewellery loans continue to record high year-on-year growth of 23% and 30%, respectively.
By May 2024, the annual growth in credit to NBFC was 16%, totalling outstanding Rs 15.68 lakh crore. However, as of the end of June, the loan book decreased to Rs 15.54 lakh crore, resulting in a year-to-date growth dipping to 0.5%.”
Earlier this year RBI had sought to moderate the bank credit to the NBFC segment by increasing the risk weightage on some of these loans.
The credit card outstandings have touched a new high of Rs 2.73 lakh crore while gold jewellery loans have risen to Rs 1.23 lakh crore.
Despite the dip in bank loans to finance companies, credit to the services segment grew 17.4% and accounts for 27.3% of bank loans. The highest growing segment within services was commercial real estate which has grown by 40% year-on-year and transport (18.7%).
Banks has added over Rs 14,000 crore of loans to commercial real estate during the first quarter of the current financial year while loans to transport operators have grown by over Rs 12,000 crore during the first quarter.
The personal loan segment continues to be the biggest driver of bank credit with a 25% growth year on year after factoring in the HDFC-HDFC Bank merger.
Excluding the merger impact the growth in personal loan segment was 16.6%. Banks have a personal loan book of Rs 54.86 lakh crore at the end of June 2024, which is 32% of their overall book.
Within personal loans home loans are the fastest growing at 36% (18% excluding the impact of HDFC merger). Home loans outstanding are now at Rs 32.82 lakh crore or 16.5% of overall bank credit which stands at Rs 168.8 lakh crore.
