Question

    What was the main factor contributing to the moderation in bank credit growth to 13.9% in June 2024?

    A Increase in credit demand for housing loans Correct Answer Incorrect Answer
    B Decrease in credit growth for the services and personal loan sectors Correct Answer Incorrect Answer
    C Merger of HDFC with HDFC Bank Correct Answer Incorrect Answer
    D Increase in personal loan growth Correct Answer Incorrect Answer
    E Rise in credit for non-banking financial companies (NBFCs) Correct Answer Incorrect Answer

    Solution

    The moderation in bank credit growth to 13.9% in June 2024 was primarily due to a decrease in credit growth for the services and personal loan sectors, influenced by a higher base effect and the introduction of higher risk weights on unsecured credit.

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