Sectoral deployment of credit indicates that credit growth so far during 7MFY13 has stayed muted, said Religare Institutional Research.
Services loan growth moderated to 11.8% YoY at 7MFY13-end (vs. 14.7% in FY12). Within the services sector, growth continues to be driven by trade (up 23.7% YoY) and NBFCs (up 27.9% YoY).
Transport operators/ tourism were also up a healthy 18.6%/14.4%, whereas credit growth in commercial real estate remains muted at just 1.3% as banks remain cautious on lending to developers, Religare said.
Growth in the personal loan segment picked up MoM to 16.4% YoY - higher than 12.1% in FY12. Within this segment, housing/vehicle loans continue to see good growth at 15.8%/22.2% YoY at 7MFY13-end (vs. 12.1%/19.7% in FY12), it said.
The unsecured loan portfolio continues to grow with credit card loans outstanding up 17% YoY.
"Given the subdued growth in sanctions, we believe overall loan growth could be significantly lower than RBI's projection of 16%," it said.
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