- The growth in bank loans to individuals was 13.7% year-on-year (y-o-y) in May, compared with 19.1% recorded in the same month of 2016, data released by the Reserve Bank of India (RBI) showed.
- Outstanding retail loans as on May 26 stood at Rs 16.17 lakh crore. Loans to individuals has been clocking growth figures in the mid-to-late teens since May 2015 before signs of a slowdown began to surface in November 2016.
- In May, outstanding on credit cards grew the most — 32.6% — among all categories of loans to individuals.
- Housing loans grew 12.1%, as compared to 18.2% in the year-ago period.
- Vehicle loans grew 11.9%, while consumer-durable loans dropped 7.8%, as buyers put purchases on hold ahead of the roll-out of the Goods and Services Tax (GST).
- Credit to the industry contracted on a y-o-y basis for the eighth straight month in May, falling 2.1% to Rs 26.03 lakh crore. In May 2016, the corresponding figure stood at Rs 26.63 lakh crore, up nearly 1% over March 2015.
- Industrial credit has been falling almost consistently since August, recovering briefly to clock a 0.9% growth in September.
- Credit deployment in industry fell 8.7% in the medium segment and 2.1% in large industry.
- Loans to micro and small industries just managed to report growth by rising 0.1%. Bank credit to industry has been muted for the last couple of years as lenders turned cautious amid worsening asset quality and well-rated corporates chose to raise money from the bond market.
via Bank loans to individuals: Growth hits slowdown in May – The Financial Express
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