As economies grow, some tend to shape away from manufacturing, with greater emphasis being given to the consumption phase or facet in the economy. An indication of consumption is observed through the lending pattern.
Credit Card Dues Grow
As per sectoral data from the Reserve Bank of India, outstanding credit card balances grew to Rs 2.8 lakh crore, exhibiting a 22 per cent rise. This made it the fastest-growing segment in the sector.
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The credit card dues amounted to 1 per cent of total bank loans in July. | Pixabay
In fact, credit card dues amounted to 1 per cent of total bank loans in July.
However, it is to be noted that, when it comes to personal loans, loans against gold jewellery grew at a sizeable 39 per cent. These loans amounted for 0.8 per cent of total bank credit.
Agriculture Credit Robust
In addition, as per the latest data, credit to agriculture and allied activities remained 'robust'. This registered a growth of 18.1 per cent year-on-year in July 2024, compared with 16.7 per cent a year ago.
When we look at credit to industries, credit to ‘chemicals and chemical products’, ‘food processing’, ‘petroleum, coal products and nuclear fuels’ and ‘infrastructure’ recorded higher growth in July 2024 as compared to their growth a year ago.
In addition, the central bank also noted that the credit growth to ‘housing’, which is said to be the largest constituent of the segment, increased at a greater rate. | Representational Image
This meant a 10.2 per cent year-on-year growth in July 2024 compared with 4.6 per cent in July 2023.
Housing Credit Rises
Along with that, bank credit to basic metal and metal products, and textiles, according to RBI, 'moderated'.
In addition, the central bank also noted that the credit growth to ‘housing’, which is said to be the largest constituent of the segment, increased at a greater rate.
Meanwhile, the Indian economy also grew at a slower pace in the first quarter of the new fiscal year, FY25. In the April-June quarter, the economy grew at 6.7 per cent, while the RBI had projected the rate of 7.1 per cent.
