Credit extended to borrowers against gold jewellery rose sharply in June, with gold loan portfolio at the end of the month rising by 123.8 percent compared a growth of 30.5 percent in the year-ago period, Reserve Bank of India data shows.
In absolute terms, the outstanding loan against gold jewellery stood at Rs 2.77 lakh crore as on June 27 as compared to Rs 1.24 lakh crore as on June 28, 2024, and Rs 2.09 lakh crore as on March 21, 2024, previous month’s data from RBI’s Sectoral Deployment of Bank Credit showed.
Credit against gold jewellery was the fastest growing in the personal loan segment. However, bank credit to consumer durables has declined during the period.
Credit to personal loans segment registered a growth 14.7 per cent as compared with 16.6 per cent a year ago, largely due to moderation in growth of ‘other personal loans’, ‘vehicle loans’ and ‘credit card outstanding’.
Credit to agriculture and allied activities registered a YoY growth of 6.8 percent (17.4 per cent in the corresponding fortnight of the previous year).
Credit to industry recorded a YoY growth of 5.5 per cent from 7.7 percent in the previous year. Credit to micro and small, and medium industries continued to grow steadily. Among major industries, credit to engineering, construction and textiles recorded an accelerated YoY growth.
Credit to services sector moderated to 9.6 percent from 15.1 percent, primarily due to decelerated growth in credit to ‘non-banking financial companies’ (NBFCs). Credit growth to ‘computer software’ and ‘professional services’ segment remained robust.
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