Indian Banking Sector – Diversity In Retail, Service Sectoral Credit Expansion: Systematix – bestinau
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Indian Banking Sector – Diversity In Retail, Service Sectoral Credit Expansion: Systematix – bestinau

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Scheduled commercial banks’ July 2022 non-food credit growth remained strong at Rs 123 trillion, up at a 28-month high of 15.1% YoY / 1.9% month-on-month.

Growth was led by all segments, with agriculture/ industrial/ services/ retail sectors registering 13.2%/ 10.5%/ 16.5%/ 18.8% YoY growth, respectively.

Key highlights for the month were:

  1. the industrials segment saw double-digit credit growth for first time in last several months, driven by large corporates,

  2. credit growth in the services segment remained strong, driven by non-banking financial companies (including housing finance companies and public financial institutions) , and

  3. within the retail segment, credit momentum was balanced between secured and unsecured segments.

In July 2022, non-food credit (calculated) on an incremental basis was positive for the 10th consecutive month and expanded by Rs 2.2 trillion. All segments led to the net credit expansion, with agri/ industrial/ services/ retail sectors contributing 13%/ 6%/ 47%/ 34% growth, respectively.