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Bank Credit Deployment - Retail Consistently Leads The Show In October: CARE Ratings

Bank Credit Deployment - Retail Consistently Leads The Show In October: CARE Ratings

<div class="paragraphs"><p>Indian five hundred rupee banknotes are arranged for a photograph in Mumbai. (Photographer: Dhiraj Singh/Bloomberg)</p></div>
Indian five hundred rupee banknotes are arranged for a photograph in Mumbai. (Photographer: Dhiraj Singh/Bloomberg)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

CARE Ratings Research Report

The non-food credit growth accelerated to 6.9% YoY in October 2021 as against a rise of 5.2% growth in October 2020, expanding by 176 basis points YoY and 16 bps month-on-month from 6.8% in September 2021 due to a pick up in the economic activities (Q2 FY22 gross domestic product growth stood at 8.4% from down 7.4% in Q2 FY21) post the gradual lifting of the lockdown and ongoing festive season.

The growth was driven by the retail, agriculture and allied and industry segments, with services reporting sluggish growth.

Credit outstanding of the retail segment rose by 11.7% due to growth in housing loan and vehicle loan driven by the festive season and low interest rates, while loan against gold jewellery also drove the retail growth.

Agriculture and allied segment rose by 10.2% in October 2021 due to a better monsoon.

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CARE Ratings Bank Credit Deployment Update Retail Consistently Leads The Show.pdf

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