July Bank Credit - Vehicle, Credit Card, Personal Loan, Mid-Corporate Segments Drive Growth: ICICI Securities

An employee counts Indian rupee banknotes. (Photographer: Dhiraj Singh/Bloomberg)

July Bank Credit - Vehicle, Credit Card, Personal Loan, Mid-Corporate Segments Drive Growth: ICICI Securities

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.

ICICI Securities Report

Bank credit sectoral deployment data for July 2021 suggests credit growth, which gained momentum post Covid-19 second wave in June 2021, is showing further signs of improvement in pockets.

Overall, credit growth is now down 0.6% year-to-date at Rs 96.0 trillion (up 0.6% month-on-month and 5.8% YoY).

Key trends include:

  1. agri and retail credit were the main drivers of non-food credit growth that was up 12.4% and 11.2%, YoY, respectively.

  2. vehicle loans momentum was upbeat in July with 12% month-on-month growth. With festive season setting in, robust traction should continue.

  3. personal loans also saw strong momentum with 16% YoY growth.

  4. credit card portfolio jumped 8.3% month-on-month/10% YoY as relaxation of restrictions resulted in higher consumer spending.

Click on the attachment to read the full report:

ICICI Securities Banking Credit Sector Deployment.pdf

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