The credit growth in the banking sector remained muted in the first quarter of this year.
In its first-quarter review of macroeconomic and monetary developments, the Reserve Bank of India said home loans grew at just 5 per cent at the end of May. Personal loans too grew at only 5.5 per cent. In May, 2008 home loan growth was 13.8 per cent and personal loan growth 16 per cent.
Said Chanda Kocchar, managing director and CEO, ICICI Bank: “The assets we wanted to grow are growing even as we are allowing certain loans such as personal loans and credit cards to decline. The transformation should be reflected in our books in the second half of this financial year.”