Outstanding home loans increased by 13.7%, or more than Rs 2.06 lakh crore, to Rs 17.06 lakh crore in the 12 months ending April 2022, signaling that the real estate sector is on the road to recovery after witnessing a downturn triggered by the Covid pandemic.
Growth in home loans was 9.9% to Rs 15 lakh crore during the same period last year, according to data from the Reserve Bank of India. Industrial credit growth accelerated by 8.1% to Rs 31.52 lakh crore in April 2022, from a contraction of 0.4% in April 2021, the RBI said.
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HDFC Ltd had said it recorded its highest ever monthly individual disbursements in March. This is despite the fact that the previous year involved concessional stamp duty benefits in some states that were not there for the current year, HDFC said earlier this month.
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State Bank of India, the largest player in the segment, said its home loan portfolio grew by 11.5% year-on-year to Rs 5.61 lakh crore in the March quarter of 2022. “Rates home loans are now up after the RBI hiked Repo rates by 40 basis points to 4.40%. Interest rates and EMIs are expected to rise further,” said a senior banker.
The personal loans segment continued to perform well, registering an acceleration in growth to 14.7% (Rs 34.42 lakh crore outstanding) in April 2022, from 12.1% in April 2021, mainly driven by the segments home and auto loans, RBI said.
On an annual basis (y/y), non-food bank credit grew by 11.3% in April 2022, compared to 4.7% a year ago.
If the RBI data is any indication, house prices are also on the rise. The All India Home Price Index (HPI) recorded an annual (year-on-year) growth of 1.8% in the fourth quarter of 2021-22, compared to 3.1% in the previous quarter and 2.7% a year ago. a year, the RBI said. Year-on-year movements in the HPI varied widely across cities, ranging from a growth of 19.2% (Kolkata) to a contraction of 11.3% (Bengaluru).
According to a report by CREDAI, Colliers and Liases Foras, average residential prices in India increased by 4% from January to March 2022 after a prolonged downturn, indicating that the residential market is on the road to recovery.
Meanwhile, outstanding credit cards also increased by 20%, or more than Rs 25,000 crore, to Rs 1.53 lakh crore in April 2022 from Rs 1.28 lakh crore a year ago, indicating that consumers were spending more. Auto loans also increased by 11.5% to Rs 4.13 lakh crore during the 12-month period.
The RBI said growth in credit to industry accelerated to 8.1% in April 2022 from a contraction of 0.4% in April 2021. In terms of size, credit to medium industries recorded a growth of 53.5% in April 2022 against 44.8%. Last year. Growth in credit to micro and small industries fell from 8.7% to 29.0%, while credit to large industries recorded a growth of 1.6% against a contraction of 3.6% during the same period last year.
Credit growth (year-on-year) to agriculture and related activities remained robust at 10.6% in April 2022 (10.7% in April 2021), the RBI said. Credit growth in the services sector accelerated to 11.1% in April 2022 from 2.4% a year ago, mainly driven by NBFCs, trade, tourism, hospitality and catering and transport operators.