While retail loan growth is gradually picking up, loan growth remains sluggish for large corporates and range-bound for services.
Lending to MSMEs, supported by the Emergency Credit Line Guarantee Scheme, has been driving industrial credit.
In retail credit, housing credit grew at 7% y-o-y in February, much below the 15% growth seen pre-Covid.
Even growth in auto loans has been sluggish because of supply-side issues at original equipment manufacturers.
Asset quality of corporates, however, remains healthy with more ratings upgrades.