Home Loans Drive Banks’ Lending Growth
Banks’ Loan Book Expands by 9.3% in First 11 Months of Financial Year
In the first 11 months of the financial year, banks lent an additional Rs 15.3 lakh crore, expanding their loan book by 9.3% to Rs 175.56 lakh crore. Home loans surpassed industry credit, making up nearly 17% of new lending, while the industry’s share decreased to 14.5%.
Personal Loans and Services Lead Lending Growth
- Personal loans accounted for the largest share at 35.71% (Rs 5.47 lakh crore).
- Services contributed 30.3% (Rs 4.64 lakh crore growth).
Home Loans Outpace Industry Credit
Within personal loans, housing loans grew by Rs 2.6 lakh crore, comprising 16.95% of incremental credit during the first eleven months. Banks have expanded their home loan books more than their credit to industry, which grew by Rs 2.22 lakh crore (14.51%).
Agriculture, Trade, and Vehicle Loans Show Positive Growth
- Agriculture saw an incremental credit of Rs 1.93 lakh crore, contributing 12.59%.
- Trade grew by Rs 1.32 lakh crore, with wholesale trade growing by Rs 93,868 crore (6.12%).
- Loans against gold jewellery surged by Rs 88,636 crore (5.78%).
- Vehicle loans grew by Rs 46,384 crore (3.02%).
- Credit card outstanding increased by Rs 30,031 crore (1.95%).
Negative Credit Growth in Select Sectors
Some sectors experienced negative credit growth, indicating a contraction in bank lending. Housing finance companies saw a reduction of Rs 1,051 crore, while public financial institutions saw a decline of Rs 9,369 crore.
