India's credit growth fastest since 2012, corporate loans up 18.3%
Business
India's seeing its fastest credit growth since 2012, with large-ticket corporate loans jumping 18.3% year-over-year in May.
According to Morgan Stanley, this surge is thanks to strong local demand, higher prices, and some helpful moves by the Reserve Bank of India (RBI).
Indian loan demand likely to persist
Household loans are also on a roll, up over 15% for four months straight, mainly because more people are buying homes and taking personal loans again.
Most corporate borrowing is going toward day-to-day business needs instead of big new projects.
Plus, NBFCs (think nonbank lenders) saw retail loan growth hit nearly 20%.
Morgan Stanley expects this high demand for loans to stick around as spending and exports pick up.