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Bank Oct Sectoral Credit- Non-Food Up, Large Corporates, NBFCs, Credit Cards The Key Drivers: ICICI Securities

Bank sectoral credit deployment data for October 2022 suggests YoY uptick across verticals.

<div class="paragraphs"><p>Indian rupee notes. (Source: Unsplash)</p></div>
Indian rupee notes. (Source: Unsplash)

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ICICI Securities Report

Bank sectoral credit deployment data for October 2022 suggests YoY uptick across verticals: 22.5% in services, 20.2% in retail credit, and 13.6% in agri and industry portfolios each.

Overall, non-food credit stood at Rs 128.6 trillion, up 2.0% month-on-month / 8.7% year-to-date / 17.1% YoY. Key trends:

  1. ending to non-banking financial companies was robust with 38.0% YoY / 7.2% month-on-month / 16.4% YTD growth. Of the incremental accretion of Rs 992 billion in services segment, NBFC lending constituted 85% (Rs 841 billion).

  2. Credit card portfolio was up 28.4% YoY, 7.2% month-on-month and 21.2% YTD led by festive season, online shopping festivals and improved revolve rates.

  3. Vehicle loan portfolio was up 2.6% month-on-month higher than its average month-on-month growth of 1.9% for H1 FY23.

  4. Retail credit expanded by 1.8% month-on-month, 20.2% YoY and 11.5% YTD. Of the monthly incremental retail credit accretion of Rs 683 billion in Oct-22, 29% was accounted for by housing, 25% by other personal loans, 18% by credit cards, 17% by vehicle loans while the balance was towards other retail loans.

Click on the attachment to read the full report:

ICICI Securities Banking Credit Sector Deployment.pdf

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