Recent data has showed that credit growth didn’t go up much this festive time. Usually in the festive season a high credit growth is expected but this time the retail loans were ahead of the credit demand. Due to the lending rates remained sticky at higher levels with Reserve Bank of India continuing with its tight monetary policy the growth was slow.

In the month of September the credit growth was noticed 6% only, where as it was 7.6% in the previous month and much more in the previous year. RBI stated that farm credit and personal loan segments were expected to be leading sectors for the growth but they couldn’t gain much this time. Personal loans grew by 13% in the month under review.