Within retail loans, auto loans grew fastest by 27.6% to R1.16 lakh crore followed by consumer durables which grew 22%. Home loans grew at a healthy pace of 17.1% to an outstanding of R1.80 lakh crore as on May 31.
Growth in retail credit of banks has been the key contributor to the overall credit growth as corporate loan growth has decelerated. Further, the incidence of non-performing assets in banks retail loans is far lower than corporate loans.
Growth in credit card outstanding was the slowest at 9% to R23,000 crore. Card outstanding contracted by a sharp 7.5% in the first two months of 2013-14, data showed.
Hit by rising NPAs, some banks slowed loans to medium, small and micro industries but these segments seem to have picked up again.
Loans to small and micro-sized companies grew at 20%, sharply higher than the 10% growth seen a year ago. Credit to medium-sized companies grew by 7.8%.
Loans to manufacturing companies grew a modest 15.5% to an outstanding of R22.59 lakh crore.
Bank loans to non-banking finance companies that had seen healthy growth in the past grew by a measly 2.8% in May, a drop from 35% growth a year ago. Loans to NBFCs in fact contracted by 2.8% during April-May period.