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NBFCs, corporate, personal loans drive credit growth
December 01, 2022
Personal loans rose 20.2% YoY, loans to industry grew nearly 14% and loans to the services sector increased nearly 23%.
The credit growth is likely to continue to be in double digits in FY23, led by the growth in personal loans and working capital loans to corporates, say analysts. “The medium-term prospects (credit growth) look promising with diminished corporate stress and a substantial buffer for provisions. However, inflation remains a key risk,” CareEdge said in a report. “Even as the RBI has managed domestic inflation to some extent, global inflation has remained high despite hawkish policies. This may lead to demand issues globally causing second-order effects in India.”
Bank loans to non-banking financial companies (NBFCs) rose 38% year-on-year as of October 21, as NBFCs continued to find banks’ interest rates more favorable than the rates offered by the capital market, RBI data showed.
Important Links:
- 4-IN-1 Professional Diploma in Banking, Financial Services & Insurance (PDBFSI): https://tscfm.org/courses/4-in-1-professional-diploma-in-banking-financial-services-insurance-pdbfsi/