Retail Credit grew at 16.3% in November 2012 - Eastern Financiers

The reduction in interest rates by banks in home loans and car loans in the festive season has brought about positive results with retail credit growing at 16.3% year-on-year in November, the highest this fiscal. Many banks also waived off or reduced processing fees to drive retail credit. It had increased by 14.1% in October and 13.3% in November 2011. In retail credit, vehicle loans grew by 25.8% compared with a growth of 22.2% in October.

While housing loans grew by 13.2% compared with a growth of 12.1%.Credit to industry increased by 17.7% in November compared with a growth of 15.2% the previous month. However, it had grown by 20.9% in November 2011.

Deceleration in credit growth to industry was observed in all the major sub-sectors, barring mining and quarrying, food processing, wood and wood products, paper and paper products, petroleum, coal products and nuclear fuels, chemical and chemical products, cement and cement products and engineering sector.

Credit to the services sector increased by 15.3% in November. It had increased by 13.7% in October. The growth was 17.2% in November 2011. Credit to agriculture increased by 24.4% in November compared with 22.9% the previous month. It had grown by 7.3% in November 2011.

Source : Equity Bulls

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