RBI curbs show effect; personal loan growth moderates in Q3, BFSI News, ET BFSI
Kolkata: Personal loan growth moderated within the quarter to December following regulatory cautioning over doable overheating. The annual progress print for the non-public mortgage section was recorded at 13.7% on the finish of December 2024 from 15.2% on the finish of September, Reserve Financial institution of India’s quarterly information confirmed.
Complete bank credit growth additionally decelerated to 11.8% in December 2024 from 12.6% in September.
The banking regulator stated that every one inhabitants teams in rural, semi-urban, city and metropolitan branches of banks maintained double-digit credit score progress, although with some moderation. This held true for each public sector and personal sector banks.
Credit score to agriculture and business sectors additionally recorded some tempering in progress whereas lending for commerce, finance {and professional}/different providers accelerated throughout the third quarter.
About half of the loans offered by banks carried interest rates of 8% to 10% whereas round 16% of the loans had been bearing lower than 8% rate of interest. The remaining loans had been bearing 10% or above rate of interest, RBI stated.
In the meantime, mixture deposits rose by 11% in December 2024 as in contrast with 11.7% progress 1 / 4 in the past. Granular information confirmed that just about 80% of the incremental time period deposits mobilised throughout April-December 2024 had been held in a single to a few years of maturity bucket, signalling a doable lag in softening of banks’ price of deposit.
The share of deposits bearing 7% or above rate of interest in complete time period deposits elevated to 70.8% in December 2024 from 61.4%.
Time period deposits rose by 14.3% year-on-year as in contrast with a 5.1% rise in saving deposits. This led to an additional rise within the share of time period deposits in complete deposits to 62.1% on the finish of December from 60.3% a yr in the past.
