$HDFC银行(HDB)$ The merger of mortgage lender HDFC with HDFC Bank has pushed up the credit growth figures for July to 19 percent compared to 14.5 percent a year ago, driven by a steep rise in retail loans .

But without the merger impact loan growth amounted to only 14.7 percent according to latest data on sectoral deployment of bank credit released by the Reserve Bank of India.

On a year-on-year (y-o-y) basis, non-food bank credit registered a growth of 14.8 per cent ( excluding the merger impact) in July 20233 as compared with 15.1 per cent a year ago.

Retail loans rose 18.4 per cent (y-o-y) in July 2023 compared to 18.7 per cent a year ago, supported by ‘housing’ and ‘vehicle’ loans. Factoring the merger of mortgage lender HDFC with the bank , the retail loan book growth works out to an all time high of 31.7 percent as housing loans worth close to Rs 5 lakh crore merged with the banking sector loan book.
Credit to industry registered a growth of 5.2 per cent (y-o-y) in July 2023 as compared with 10.5 per cent in July 2022. Among major industries, credit growth to ‘basic metal & metal products’ and ‘textiles’ accelerated in July 2023 as compared with the corresponding month of the previous year. Credit growth to ‘chemicals & chemical products’, ‘food processing’ and ‘infrastructure’ on the other hand contracted.Credit growth to services sector accelerated to 19.4 per cent (y-o-y) in July 2023 from 16.7 per cent a year ago, primarily due to ‘trade’ and ‘commercial real estate’.Credit growth to agriculture and allied activities improved to 16.8 per cent (y-o-y) in July 2023 from 13.2 per cent a year ago.Data on sectoral deployment of bank credit for the month of July 20231 was collected from 40 select scheduled commercial banks, accounting for about 93 per cent of the total non-food credit deployed by all scheduled commercial banks.