In February 2024, the growth rate of retail credit slowed to 18.1% year-over-year (Y-o-Y) from 20.6% due to a decline in vehicle financing and personal loans. This data excludes the impact of HDFC's merger with HDFC Bank.
Credit card outstanding, a segment of personal loans, maintained a stable growth rate of 31% Y-o-Y, compared to 30.8% previously. However, the growth in other personal loan categories, which include a significant portion of unsecured credit, decelerated to 19.7% in February 2024 from 26.7% a year earlier.
Vehicle loan growth also slowed, reaching 17.5% in February 2024, down from 23.3% a year ago.
In contrast, credit to industry and services sectors improved. Credit to industry grew by 8.6% Y-o-Y in February 2024, compared to 6.8% previously. Credit to the services sector also increased, with a growth rate of 21.2% in February 2024, up from 20.5% a year ago.
Loan growth in agriculture and allied activities remained robust, reaching 20.1% Y-o-Y in February 2024, an increase from 15% a year earlier.
Meanwhile, the weighted average lending rate (WALR) on fresh rupee loans of scheduled commercial banks declined to 9.36% in February 2024 from 9.43% in January. The rates also softened on outstanding loans, decreasing from 9.85% in January to 9.83% in February.
The weighted average domestic term deposit rate (WADTDR) on fresh rupee deposits increased to 6.44% in February from 6.43% in January. WADTDR on outstanding rupee deposits also rose to 6.86% in February from 6.84% in January.