Home / Business and Economy / India Bank Credit Surges 19.3% Amidst Robust Lending
India Bank Credit Surges 19.3% Amidst Robust Lending
31 Aug
Summary
- Bank credit in India grew by 19.3% year-on-year in July.
- Lending to industry, services, and personal loans showed strong acceleration.
- Gold loans saw a significant 136% year-on-year increase.
India's bank credit demonstrated strong growth in July, expanding by 19.3% year-on-year. This robust increase was underpinned by significant lending to industry, which grew by 20%, and the services sector, which saw a 22.9% rise. Agriculture and allied activities also experienced notable credit growth of 17%.
Personal loans maintained their upward trajectory, with credit growth accelerating to 16.2% year-on-year, driven by housing and vehicle loans. In a remarkable trend, lending against gold jewellery surged by an exceptional 136% compared to the previous year. This growth reflects a vibrant lending environment across multiple economic spheres.
Earlier in June, outstanding non-food bank credit had expanded by 18.3% year-on-year. The Reserve Bank of India's data indicates a broad-based acceleration in credit, with particular strength in lending to large and medium industries, alongside continued steady growth in micro and small industries.
