Foreign banks have improved their credit growth vastly in 2010-11. Banks which have a market share of 7% in the banking industry have seen their credit expand by 18.6% to R31,932 crore in 2010-11 as against negative growth of 1.5% in 2009-10, Reserve Bank of India said on Monday.
Private sector banks, which have almost over 20% of market share in the banking industry, has grown their credit by 24.5% to R143,325 crore in 2010-11. Private sector banks had registered a credit growth of 11.7% in 2009-10.
Public sector banks, which have a market share of around 72% in the banking industry, has recorded a credit growth of 21% to R505,785 crore in 2010-11. The PSBs had expanded their credit by 19.6% in 2009-10, said RBI.
The central bank has said that the property prices continued to rise in most cities during Q3 of 2010-11, as reflected in the RBI Quarterly House Price Index (HPI) based on data in respect of seven cities collected from the Department of Registration and Stamps (DRS) of the respective state governments. However, the indices for Delhi and Chennai witnessed a decline during this period.
Banks had maximum exposure in services and commercial real estate sector while their lending to agriculture and industry witnessed decelerations in 2010-11.
Despite having tighter norms and upward trend in interest rates, banks? lending to the commercial real estate witnessed a 21.4% jump to R111.826 crore against de-growth of 0.3% in 2009-10. Banks credit to the housing sector doubled to 15% y-o-y or by R45,000 crore to R346,110 crore in 2010-11. Banks had a total exposure of R300,929 crore in housing segment during 2009-10.
Credit to the services sector, led by NBFCs,professional services, transport operators and tourism, hotels and restaurants, grew by 23.9% during 2010-11 compared with 12.5% in the previous year.
Credit to personal loans went up by 17 % during 2010-11, compared with 4.1% during the previous year. Credit growth to agriculture decelerated to 10.6% during 2010-11 from 22.9% last year.
Total outstanding credit to agriculture and allied activities stood at R4.60 lakh crore in 2010-11 as against R4.16 lakh crore in the previous year.
