Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ News / India/  Sharp spike in loans to NBFCs, renewable energy, aviation cos in January
BackBack

Sharp spike in loans to NBFCs, renewable energy, aviation cos in January

Growth in credit to NBFCs spiked to 20.2% YoY, after falling to a 38-quarter low of 7.8% YoY in November 2020

Aviation sector saw 120% jump in credit growth to ₹12,280 crore at the end of January 2021 (MINT_PRINT)Premium
Aviation sector saw 120% jump in credit growth to 12,280 crore at the end of January 2021 (MINT_PRINT)

Mumbai: Non-food credit growth of banks slowed to 5.7% in January led by a decline in industrial and personal loans. Credit growth in this category was 8.5% in January and 5.9% in December.

Loans to aviation and non-banking finance companies saw a sudden spike in January, even as services sector credit growth continued to slow, reaching 8.4% year-on-year in January 2021, after having risen to 9.5% in October 2020 and 8.8% in December.

Also Read | Assam shakes up the micro loans universe

Within services, aviation sector saw 120% jump in credit growth to 12,280 crore at the end of January 2021 compared to a 60% contraction last year. Similarly loans to NBFCs, like Power Finance Corporation, and Rural Electrification Corporation, saw a 151% growth to 71,109 crore during the same period.

Growth in credit to NBFCs spiked to 20.2% YoY, after falling to a 38-quarter low of 7.8% YoY in November 2020. MoM growth came in at a whopping 12.1% after several months of flattish growth.

Personal loans segment saw growth slowing to 9.1% year on year, the lowest in the last 10 years after staging a recovery in growth to 10% year on year in November. Within this segment, home loans saw sluggish growth of 7.7% year on year, the lowest in the last 10 years and credit card debt saw a 5% growth. Vehicle loan growth slowed slightly, reaching 7.1% year on year. Gold loans continued its growth momentum touching 132% year on year.

Agricultural credit growth accelerated further to 9.9% year on year, boosted by back-to-back surplus monsoon seasons.

Industrial credit witnessed persistent contraction of 1.3% in January. This trend was led by large industrial credit, which constitutes 82% of industrial credit.

However, this segment registered a 50 bps month-on-month growth. Micro and small industries saw negligible growth at 90 bps year on year, while growth in credit to medium industries continued to surge, reaching 19.1% year on year. Growth in credit to medium industries was aided by disbursals under the Emergency Credit Linked Guarantee Scheme (ECLGS).

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

ABOUT THE AUTHOR
Gopika Gopakumar
Gopika Gopakumar has worked for over 15 years as a banking journalist across print and television media. Her expertise lies in breaking big corporate stories and producing news based TV shows. She was part of the 2013 IMF Journalism Fellowship Program where she covered the Annual & Spring meetings of the International Monetary Fund in Washington D.C. She started her career with CNBC-TV18, where she also produced a news feature show called Indianomics and an award winning show on business stories from South India called Up South. She joined Mint in 2016.
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 01 Mar 2021, 02:13 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App