Synopsis
- Gross bank credit offtake witnessed an elevated increase of 19.8% year-on-year (y-o-y) in August 2023 due to robust demand from the personal loans and services segments, and the impact of the merger between HDFC Bank and HDFC. Without considering the merger, the y-o-y growth stood at 14.9%.
- Personal loans witnessed a robust growth of 30.8% y-o-y in the month due to the impact of the merger (reclassification of HDFC’s loans), and growth in unsecured and vehicle loans. Sequentially, it improved by 80 basis points (bps) (on a m-o-m) from July 2023. Excluding the impact of the merger the growth rate for personal loans reduced marginally by 110 bps y-o-y from 19.4% to 18.3% on a y-o-y- basis.
- Services segment reported a robust rise of 24.7% y-o-y in August 2023 due to growth in Non-Banking Financial Services (NBFCs), trade and commercial real estate. Without considering the merger, it also reported a robust growth of 20.7% y-o-y vs. 17.4% a year ago.
- Industry moderated to 6.7% y-o-y in August 2023 from 11.4% over the year-ago period due to slow growth in Micro, Small & Medium Enterprises (MSME) and muted growth in infrastructure.
- Incremental gross bank credit rose by 9.1% in August 2023. Without considering the merger, it was marginally lower by 10 bps from 4.8% over a year ago.
