Card dues & gold loans beat bank credit growth of 20%


MUMBAI: For banks, credit card excellent and gold loans stay outliers in growth. The segments recorded a year-on-year improve of 26.2% and 29.7% respectively as of May 2024.
This is far greater than the 19.8% growth in total bank credit which – adjusting bank’s books for the addition of loans as a consequence of HDFC’s merger with HDFC Bank – shrinks right down to 16.1%.
The improve in credit card and gold loans comes at a time when RBI has expressed issues over unsecured credit and is taking a tough have a look at the gold mortgage books of some lenders, given the surge in costs of the yellow steel.
Another phase that has been of concern to RBI – bank credit to non-banking monetary firms – has moderated. But this phase’s growth remains to be sooner than total bank credit growth at 16%.

Monthly sectoral information on bank credit launched by RBI reveals that credit card excellent stood at Rs 2.7 lakh crore as of May, up from Rs 2.6 lakh crore on the finish of March 2024 and Rs 2.1 lakh crore a yr in the past.
Banks’ gold mortgage books stood at Rs 1.2 lakh crore on the finish of May, in comparison with Rs 1 lakh crore on the finish of March and Rs 90,036 crore within the year-ago interval. Bankers mentioned that the rise might even have been as a consequence of a rise in market share from NBFCs. Credit playing cards and gold loans are watched fastidiously as a result of they mirror family indebtedness and at occasions monetary misery.
The private phase, with a year-on-year growth charge of 28.7%, continues to be the fastest-growing amongst business, agriculture, companies and private loans. However, that is because of the HDFC-HDFC Bank merger, which has resulted in dwelling loans rising practically 39% yearly (16.9% excluding the merger).
Excluding the merger impression, companies are the fastest-growing phase at 23.2% versus 17.8% within the private phase. A big element of service business loans contains of offering loans to lenders.
While the growth charge in credit to NBFCs has moderated from a excessive of 27% a yr in the past, the guide dimension continues to stay massive at practically Rs 15.7 lakh crore – up 1.3% from Rs 15.5 lakh crore in March.

Nilesh Desai
Nilesh Desai
The Hindu Patrika is founded in 2016 by Mr. Nilesh Desai. This website is providing news and information mainly related to Hinduism. We appreciate if you send News, information or suggestion.


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