Banks extended retail loans worth Rs 33,107 crore November, covering housing, vehicle and credit cards. The scale of lending that month was lower than the volume in October, when retail lending was about Rs 39,780 crore.
According to Reserve Bank of India data, retail loans grew 10 per cent year-on-year in November 2020 as compared with 16.4 per cent growth in November 2019.
Within this sector, vehicle loans continued to perform well, growing at an accelerated 10 per cent in November 2020 vis-a-vis 4.7 per cent in November 2019, RBI said in statement.
Bankers said the pace of retail loan disbursement has been steady in December, helped by various festival schemes and sops offered to boost sale of houses.
On a YoY basis, non-food bank credit growth stood at six per cent in November 2020 versus 7.2 per cent a year ago.
Credit growth to the services sector accelerated to 8.8 per cent in November 2020 from 4.8 per cent in November 2019 mainly on the back of acceleration in credit growth to ‘transport operators’ and ‘trade’ within the services sector.
Credit to industry contracted marginally by 0.7 per cent in November 2020 as compared with 2.4 per cent growth in November 2019. The credit to large industries contracted by 1.8 per cent in November 2020 (three per cent growth a year ago). However, credit to medium industries registered a robust growth of 20.9 per cent in November 2020 vis-a-vis contraction of 2.4 per cent a year ago.
Loan growth in micro and small industry moved into positive territory in November 2020 with 0.5 per cent growth as against contraction of 0.1 per cent in November 2019.