Home loans comprise the biggest chunk of household debt even as credit card outstanding has shown a considerable increase to Rs 1.6 lakh crore from Rs 1.3 lakh crore in end of July 2021.

Home loan outstanding stands at Rs 17.7 lakh crore at the end of July 2022. There has been a moderate spike in the home loans segment of banks’ overall credit to 14.34% in July 2022 from 14% at the end of July 2021.

The share of home loans in banks’ overall credit will see a spike after the merger of

and . Post the merger the home loan book of banks is expected to climb to Rs 21 lakh crore, according to a report in Times of India.

According to the latest data put out by the RBI, bank credit grew at 14.52% to Rs 123.69 lakh crore while deposits increased 9.14% to Rs 169.72 lakh crore in the fortnight ended July 29.

The pick up in personal loan segment shows that the consumption is slowly getting back to normal after a prolonged slowdown seen in the wake of the COVID curbs. The recent Q1 GDP data, which came in at 13.5% and was below estimates, also saw private consumption surging nearly 26% on year.

Consumer loans have surged 16.5% since end of March 2022. Lonas against fixed deposit advances have grown 11.8% in the same period.

The worry in the industrial loans segment remains with a subdued credit growth with infrastructure performing better than sectors like gems and jewellery, telecom, engineering and edible oils.

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