Home loan growth boosts retail lending at Indian banks this festive season

Posted By: Religare
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Home loan growth boost retail lending at Indian banks
Indian banks, struggling to improve their bottomline in a slowing economy, finally saw some relief with retail lending growth during the festive season, which generally sees the demand for home and vehicles going up.

As per a data from Reserve Bank of India (RBI), growth in outstanding home loans in absolute terms was Rs 7,200 crore on a month-on-month basis in October compared with a growth of Rs 3,046 crore in October 2011.

Experts said that this rise in retail lending was helped by reduction in interest rates and processing charges by banks in home and vehicle loans.

Moreover, the data of Rbi showed that home loans contribute the largest segment of retail loans for banks.

Similarly, auto loans also saw growth during the festive season. The growth in outstanding vehicle loans in absolute terms was Rs 1,300 crore on a month-on-month basis in October compared with a growth of Rs 1,107 crore in October 2011.

Read more about: home loans
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