Gold loans, consumer durables drive NBFC credit growth to 14.9% in July
Non-banking financial companies saw 14.9 percent credit expansion by July end. This growth accelerated from last year's 10.6 percent expansion. Gold loans surged 68.5 percent and consumer durable loans grew 51.5 percent. Retail loans within NBFCs increased 21.4 percent, showing strong performance. Housing and vehicle loans also recorded significant year-on-year growth.
Kolkata experienced an impressive surge in non-banking financial companies (NBFCs) credit growth, reaching 14.9% year-on-year by the end of July. This significant increase was primarily driven by the burgeoning demand for gold loans and consumer durable loans. Notably, gold loans from non-bank lenders skyrocketed by 68.5% to Rs 3.54 lakh crore, while consumer durable loans expanded at a remarkable 51.5% to Rs 74.644 crore.
This exceptional growth trajectory is a stark contrast to last year, where gold loans expanded by 43.9% and consumer durable loans increased by 18.8% year-on-year. Meanwhile, the banking sector also witnessed credit expansion, with NBFCs recording a 14.9% year-on-year growth compared to banks' more robust 19.3% growth to Rs 221 lakh crore.
The retail loan segment within NBFCs surged by 21.4% year-on-year to July-end, compared to a 13.7% increase a year prior. Housing loans, as well as vehicle loans, also contributed to the growth, expanding by 11.9% to Rs 8.55 lakh crore and 15.1% to Rs 6.29 lakh crore respectively. Notably, NBFCs' credit to agriculture and allied activities grew by 18% compared to 5.4% a year ago, while credit to industry expanded by 7.4% compared to the previous year's 9.3%, primarily due to slow growth in infrastructure.
Credit growth in the services sector moderated to 15.2% from 24.5% a year ago. Although credit to commercial real estate expanded substantially, growth in trade and transport operators segments decelerated.
Written by urgent.news from The Economic Times - Top News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
