As per RBI sectoral deployment of credit data, bank credit registered growth of 16.0% YoY in August 2022 compared with 6.7% a year ago. The growth was mainly driven by retail segment which grew 19.5% YoY (vs. 12.8%), followed by services, which grew 17.2% YoY (vs 2.1%). The credit growth to agriculture and allied activities remained healthy at 13.4% in August 2022 (vs 13%). Credit growth to industry improved to 11.4% (vs 1.5%).
The upcoming festive season is expected to give a further boost to retail credit. We expect bank credit growth for FY23E to be in early double digits, which remains a positive phenomenon for the industry.
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