The Daily Brief The detours and contours of India's credit story
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Sep 8, 2025 Explore the fascinating nuances of India's evolving credit landscape, including disparities in banking growth across sectors and rising borrowing costs amidst interest rate cuts. Delve into key economic insights, such as the impact of institutional credibility on bond yields and notable market developments, like India's increasing diesel exports to Europe. Additionally, learn about Apple's strong sales and Amazon's strategic moves, painting a vivid picture of the dynamic interplay within the Indian economy.
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Credit Growth Has Bottomed Around 10%
- India's overall bank credit growth has bottomed around 10% after a period of decline.
- The recovery looks uneven because agriculture and industry lag while services and personal loans lead.
Personal Loans Drive The Retail Picture
- Personal loans dominate retail credit and housing loans form nearly half of that mix.
- Cooling home loan growth and falling credit-card expansion could drag overall credit significantly.
Credit-Card Growth Has Collapsed
- Credit-card growth has plunged to its weakest level since January 2015 amid rising delinquencies.
- Banks are tightening issuance and limits to manage higher default risk despite cards' high margins.