Banks keen to lend to SMEs- Consumer durables loan show an upward trend
The latest data from the Reserve Bank of India shows that the growth in loans to industries continued to be lukewarm in April, rising a mere 12.3% to Rs 25, 14,000 crore compared to a growth of 15.6% in the same period last year.
Compared to the large industries, the banks are more keen to render loans to the small and medium enterprises (SME) as the demand from the large corporates was less.
Mr S.S. Mundra, the CMD of Bank of Baroda mentioned in a press conference that the loan growth in the corporate sector has remained tepid from the beginning of FY14, and in order to sustain the profits, the banks have decided to lend aggressively to the retail and SME segments.
Even though the retail loans grew at a slower pace of 14.5% compared to 15.6% last year, they have given a steady business to the banks. A slight improvement in the consumer sentiment post the recession had amounted to a surge in the consumer durables segment. This had resulted in the growth of the consumer durables loan which was the fastest in the retail segment. It increased to 60.1% to Rs 13,700 crore compared to the last year.
The home loans grew at a healthy rate of 17.1% to R5, 45,100 crore compared to 16.5% last year.
Source- The Financial Express
Banks keen to lend, Consumer durables loan show upward trend, loan growth in the corporate sector, Reserve Bank of India, Small and medium enterprises
