January 7, 2017 2:36:06 am
Maharashtra had faster-than-average credit growth at the end of September compared to a year ago, data released by the RBI on January 5 shows. Credit growth in Maharashtra was 12.45 per cent year-on-year compared to 7.89 per cent across India. Since the country’s financial capital is located in the state, Maharashtra accounts for 30 per cent of outstanding loans given by Indian banks.
The fastest growth was seen in the North-East with states such as Manipur (29.35 per cent), Tripura (29.21 per cent) and Assam (24.14 per cent) showing some of the fastest loan growth in the country.
At the other end of the spectrum, northern states such as Jammu & Kashmir (-20.64 per cent) and Rajasthan (8.98 per cent) saw bank loans shrink.
The RBI didn’t specify any reason why loan growth fell in these regions. Note also that RBI’s state-wise credit data comes with a one-quarter lag, so these numbers do not capture the full effect of the demonetisation of Rs 1,000 and Rs 500 currency notes.
Within Maharashtra, the fastest growth segment was personal loans, which grew at 21.25 per cent year-on-year.
Loans for consumer durables grew at a robust 58.28 per cent as purchases of TVs and washing machines grew ahead of the festival season. Vehicle loans also jumped by one-fifth, while housing loans grew by 15.48 per cent.
Agriculture loan growth came in at 19.12 per cent while credit to industry grew slower at 14.11 per cent. Industry loan growth was smaller because of the lower 4 per cent pace in the manufacturing and processing sector.
With overall credit growth in India slipping to 5.16 per cent as on December 23, most of these numbers are also likely to slip in the December quarter.
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