Here are the five key highlights of the report:
1. A depressed investment cycle, persisting excess capacity in manufacturing, and deleveraging on the part of corporates to improve their credit ratings have contributed to the slowdown in credit growth.
2.The worrying thing is that pace of growth in personal loans (especially housing) have been declining since September 2016, which was the growth driver among all the sectors.
3.In the current fiscal, personal loan has witnessed the maximum incremental credit growth, mostly in the category of loans against pensions, insurance products and express credit (against salaries). This trend has been continuing since FY17.
4.Credit card outstanding has continued to increase at the same pace as last year. Housing loans have witnessed only a marginal increase and that is a point of concern, the report clarifies.
5. Liquidity conditions have remained broadly in surplus mode, due to demonetisation. Banks are doing all the efforts to lower the lending rates.