Bank loans rose Rs 1.19 lakh crore during the fortnight ended November 2021 to Rs 111.63 lakh crore. This translates into year-on-year growth rate of 7.14 per cent compared to 6.8 per cent in the previous fortnight. Bulk of the loan demand is , bulk of which is expected to be in the retail space as consumers spent a a record Rs 1.25 lakh crore this Diwali according to data by Confederation of All India Traders.
The latest data on sectoral flow of credit offtake consumer durable loans have risen by 40 per cent in September compared to 14.9 per cent in the same period a year ago, with borrowers taking advantage of the reduced interest rates
In addition consumer durable loans have risen by 40 per cent compared to 14.9 per cent in the same period a year ago, with borrowers taking advantage of the reduced interest rates
Deposits rose Rs 3.35 lakh crore during the fortnight to Rs 160.49 lakh crore. This translates into year-on-year growth rate of 11.4 per cent cent compared to 9.9 per cent in the previous fortnight. Though about 50 per cent of the deposits are parked in more liquid demand deposits (Rs 1.45 lakh crore) to be invested in the IPOs, term deposits also rose Rs 1.9 lakh crore.
Credit bureau data also indicate a pick up in retail loan demand during the pandemic period. They are seeing a sharp pick-up in loan demand even after the second lockdown in April. “The latest TransUnion Cibil’s credit market indicators CMI shows that India’s retail credit market is poised for strong growth supported by a significant resurgence in credit demand as well as supply, despite the second wave of the pandemic. Inquiry volumes have increased by 54% between February 2021 and October 2021, as economic activity gained momentum” said Rajesh Kumar, Managing Director and CEO of TransUnion CIBIL. “Lenders have adapted quickly to the shift in new credit originations via digital channels, which has become the new normal in the pandemic environment”.
Lending to Medium sized firms is also picking up rose 49 per cent year-on-year to Rs 1.75 Lakh crore as of end September compared to the same period a year ago. Much of the lending is reckoned to be under the government’s Emergency Credit Line Guarantee Scheme (ECLGS) MSME sector, under which the government provides 100% Guarantee to banks in respect of eligible credit facility extended by it to its borrowers.
