DNA Money Edit: RBI can take credit as loans fly

The credit growth data released by Reserve Bank of India (RBI) has brought in some positive surprises. After a disturbing slowdown in October, incremental credit growth has picked up pace in November. What is inspiring is the fact that the growth has come from both retail as well as industrial sectors. Among others, home loans and personal loans have seen positive growth.

According to SBI Research, of total incremental credit expansion of Rs 4.34 lakh crore in the current financial year so far, Rs 3.46 lakh crore is accounted for in the three months ended November. The incremental retail credit expansion in September-November at Rs 73,800 crore is the highest in the last decade. As per the latest RBI numbers, bank deposits and advances are growing at 9.7% and 15.1%, respectively, making it the highest growth in five years.

Credit to India Inc has picked pace again in November after a dull October, with sectors such as food processing, iron & steel, cement, fertiliser, petroleum, roads and power taking its credit. The recent imbroglio involving non-banking finance companies has hit the numbers as incremental credit to these companies fell to Rs 3,700 crore in November from Rs 16,000 crore in October and Rs 56,500 crore in September. The year 2019 starts on a promising note.