Post News Network
Bhubaneswar, Nov 8: Banks are witnessing a rise in retail loan segment after the repo rate cut by Reserve Bank of India and subsequent reduction in interest rate by commercial banks.
Further, ongoing festive season is supplementing this uptrend in the recent time. As banks are facing subdued loan demand in the corporate segment, retail loans have emerged as the growth area for them.
As per bankers, demand of personal loan, car loan and housing loan are the biggest growth drivers in the retail segment as of now.
Statistics from Reserve Bank of India is reflection of this trend. According to the central bank, housing loans grew 17.8 per cent in September against 15.5 per cent same month last year. Car loans too clocked an impressive growth with overall disbursal rising by 17 per cent. Car loan growth stood at 17.4 per cent in August 2014. Similarly, personal loan segment grew 17.3 per cent in August compared with 12.8 per cent a year ago, indicating a pick-up in demand.
Analysts are of the opinion that low consumer inflation number has pushed of overall consumption demand. Overall consumption demand is likely to be more than 8 per cent in the current financial year against 6.3 per cent reported in the last financial year.
With improved sentiment in the job market with positive hiring outlook, people have started spending in recent months. Consumer durables witnessed three months of consecutive double-digit growth, indicating this upward trend.
