Jubilee Post News & Views
Jubilee News Desk
With unlock announced in India business activities started and markets opened too. Scheduled commercial banks expanded their outstanding non-food credit for second straight month in July 2020. They made net disbursements of credit of Rs 20.4 billion in July 2020 — higher than Rs.172.7 billion in June.
Net credit disbursals or net credit offtake are fresh disbursals of credit adjusted for repayments. Outstanding personal loans grew by Rs 408.5 billion, after rising by Rs 115.2 billion in June. Net disbursals of personal loans had remained in the negative zone in April and May 2020.
Nearly 30% of the net disbursals of personal loans in July, amounting to Rs 116.6 billion, came from the home loans segment. Top realtors, claimed to have seen a V-shaped recovery in demand in the housing segment in July, and August, according to a report in cmie.
Net monthly disbursal of transport vehicle loans came out of the negative zone in June, at Rs 540 million, and these advanced further to Rs 31 billion in July. This mimics the movement in domestic sales of passenger cars and two-wheelers, which remained absent in April, improved to 0.3 million units in May and further to 1.1 million units in June and 1.4 million units in July.
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Credit card outstanding increased by Rs 38.1 billion in July. This was the second consecutive month in which credit card outstanding rose, albeit at a slower pace than the Rs 47 billion rise seen in June.
Outstanding loans disbursed for agriculture and allied activities increased by Rs.163.4 billion in July. Although the amount was higher than the Rs.67.3 billion agricultural loans disbursed by SCBs in June, it appears quite small when compared to the Ministry of Finance’s claim of banks having sanctioned Kisan Credit Card loans worth Rs 269.4 billion during July 1-24, 2020, and an additional Rs.122.6 billion by August 17, 2020.
