Indian banks’ retail credit rises 14.5%

Economic slowdown forces banks to push retail loans.

The Reserve Bank of India said banks’ outstanding retail loans grew 14.5% in March 2013 as against the 12.9% growth year-on-year.

All other major banking indicators slowed during 2012-13 financial year, RBI said. Credit to industry grew 15.7% in March compared to 20.3% year-on-year. Credit in the priority sector grew 8.6% in March versus 12.1% year-on-year.

Vehicle loans grew 24.9% in March as against 22.2% year-on-year. On the other hand, credit cards outstanding improved 23.8% in March compared to 12.9% year-on-year.

Banks significantly lowered interest rates on retail in FY13, boosting credit growth in this segment. In the priority sector, direct lending to agriculture grew 8.1% against 13.% year-on-year.