Real estate sector bucks bank credit slowdown trend

The economic slowdown continued to curtail the growth of bank credit in the second quarter as well. Banks’ credit to the large companies has come down by Rs 76,500 crore during March-July period of this fiscal, with the manufacturing sector bearing the brunt of the slowdown seeing a Rs 11,800 crore deceleration in bank loans, according to the sectoral bank credit data released by the Reserve Bank of India (RBI).

The commercial real estate advances have however bucked the trend by growing by Rs 49,000 crore during this period. Banks continue to tap into the retail consumer demand loans with personal loans, which have grown by Rs 55,800 crore during the March to July period. Of this, Rs 34,800 crore comes from mortgage loans and credit cards.

Read more: Dnaindia