The latest data from Reserve Bank of India shows a rise in bank credit across all sectors. On a year-on-year basis, non-food bank credit rose 15.9% in February 2023 compared to 9.2% a year ago. The increase in repo rates have not drastically affected the pace of credit growth, according to chief economist at Bank of Baroda, Madan Sabnavis. Credit growth in the retail sector accelerated to 20.4% YoY, driven by housing loans. Credit growth in the services sector improved significantly to 20.7% YoY, primarily due to higher loans to Non-Banking Financial Companies (NBFCs).
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