According to bankers, growth in the retail sector, especially in housing and automobile sectors is likely to remain muted in the first six months of the current financial year.
Along with this economic growth and high inflation will also remain muted in the first half of this fiscal.
According to Mr. S. V. Parthasarathy, Head-Consumer Finance, IndusInd Bank, "The retail loan segment will continue to remain under pressure till September 2013.
The commercial vehicle (CV) segment had seen de-growth in 2012-13, while housing sector lending saw a correction after the boom in 2011-12. The correction is likely to continue for the first two quarters of FY14."
As per RBI data, year-on-year (y-o-y), bank credit stood at a slower rate of 14.4 per cent in February 2013 against an increase of 15.4 per cent in February 2012.
Mr. Jairam Sridharan, Head-Consumer Lending and Payments, Axis Bank, said, "In the retail sector, core assets such as mortgage, housing, auto and credit cards have seen robust growth though it has been lower than in the past few years. The growth may remain stagnant in the first six months."