How the retail segment is pushing systematic credit growth faster

Systematic credit has been growing at 8 per cent CAGR since FY19 and at a much faster 12.5 per cent CAGR since FY21. The share of retail within systematic credit is also increasing Y-o-Y from 30 per cent in FY19 to 37 per cent in FY24. Retail credit, on the other hand, witnessed solid Y-o-Y growth at low teens since FY23 and the share of personal loan and gold loan have increased while that of housing and auto loan has decreased. However, moderation in retail credit growth is expected on account of RBI’s increase in risk weight mandate for riskier loans. 


Compiled by Arun K Shanmugam