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HomeBusinessFinanceEconomic uptick boosts credit offtake beyond 20% in retail, services

Economic uptick boosts credit offtake beyond 20% in retail, services

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The remained robust across sectors — farming, industry, services, and retail — in October, the start of a busy season, on increased demand amid economic upturn and festivals.


on a year-on-year (YoY) basis in the retail segment — comprising households and individuals — and the crossed the 20 per cent mark. Retail loans expanded by 20.2 per cent in October 2022, against 12.6 per cent a year ago. The rise in was largely driven by the housing and vehicle loans segments.


(RBI) data showed that credit to the accelerated to 22.5 per cent YoY in October 2022, from 2.8 per cent a year ago. The surge was mainly due to by financial companies and the trade sector.


The credit to industry — small, medium, and large — registered 13.6 per cent growth in October 2022 versus 3.3 per cent growth in October 2021. Size-wise, credit to large industry accelerated 10.9 per cent, against a contraction of 0.4 per cent a year ago. Medium industries recorded of 31.0 per cent in October 2022, as compared with 35.1 per cent a year ago.


Credit to micro and small industries rose 20.4 per cent (it was 14.6 per cent a year ago).


Bankers said there was an increase in economic activity. Also, the rise in input costs due to inflation and delay in payments have pushed business units (industry and services) to a higher working capital limit.


Credit to agriculture and allied activities was robust at 13.6 per cent YoY in October 2022, compared to 10.8 per cent a year ago.

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