According to provisional information up to August 2007 from select scheduled commercial banks, growth in credit to domestic real estate decelerated from 69.8 % to 52.2%. Even at the lower growth rate, it is very robust, the Centre for Monitoring Indian Economy (CMIE) in its November report noted. Personal loans grew by 19.8% compared to 26.5% in 2006-07. Within personal loans, housing credit decelerated from 24.6% to 16.6%. Consumer durables credit growth decelerated from 28.9% to 4.1%. Other personal loans decelerated from 30.3% to 22.5% credit to industry expanded by 24.6 % on a year on year basis. CMIE its November report noted that the credit industry expanded by 24.6% on year on year basis till August 2007. This was little slower than the growth of 25.7% till March 2007, said the report.
Credit to agriculture grew by 24.4 % compared to 32.4% at end March 2007, while credit to services expanded by 24.5% compared to 31 % in 2006-07
The sectors which account for significant credit off take in total credit and which witnessed deceleration in credit growth include textiles, metals engineering and petroleum. All service sectors except software, tourism, hotels and NBFCs reported deceleration in credit off take. While credit growth across most broad sectors slowed down, there were some sectors, which witnessed some acceleration in credit off, take. Infrastructure credit growth accelerated to 32.1% from 26.8% in 2006-07. Chemicals too picked up to 16.1% from 14.2%. The pick up in vehicles and auto parts segments was even sharper at 28.5% from 11 % at March 2007.
While overall credit growth slowed down, deposit growth continued to accelerate. Reflecting high profitability and internal generation of resources by the corporate sector, its share in total deposits with banking system has been increasing mainly in the form of short-term deposits.