Synopsis
• Gross bank credit offtake (ex-merger basis) witnessed an increase of 16.1%, higher by 70 bps on a y-o-y basis.
• The services sector experienced strong credit growth of 20.7% y-o-y in May 2024, slightly lower than the 21.3% recorded in May 2023. This growth was bolstered by increased credit in segments such as commercial real estate, transport operators, and professional services. However, credit growth to non-banking financial companies (NBFCs) decelerated compared to the previous year.
• Industry segment exhibited a growth of 8.9% y-o-y in May 2024 compared to 6.0% in May 2023, led by growth in Micro, Small & Medium Enterprises (MSME) lending and growth in sectors like infrastructure and textiles.
• Meanwhile, the personal loans segment growth rate reduced by around 130 bps (from 19.1% for the same period last year) to 17.8% in May 2024. Credit housing, the largest segment within personal loans, saw an acceleration, indicating sustained demand in the housing market.
