mumbai incremental bank loans to businesses have outpaced retail loans in the first quarter of fy24 the share of industry and services in incremental bank loans for the june quarter stood at 51 as compared to 46 in fy23 rbi data showed banks expanded their loan books by rs 72 lakh crore in the first three months of the fiscal year reaching rs 1439 lakh crore of this rs 18 lakh crore 245 comprised personal loans within personal home loans constituted rs 63530 crore or 89 of incremental bank credit credit numbers for the second quarter however are likely to be skewed towards the retail sector again due to the merger of hdfc with hdfc bank home loans will get a considerable boost in the september quarter due to the addition of erstwhile hdfcs loan book to hdfc bank credit to housing finance companies too will dip due to the mergerthe june quarter saw rs 87392 crore lent to the industry raising its share to 122 in fresh loans according to economists fresh investments by corporates are overdue because of high capacity utilisation however businesses are wary that high inflation may cool demand as a result infrastructure is expected to continue being a driver of industrial creditpublic sector banks have already provided higher sanctions to industry we expect this to materialise in the second half of fy24 largely driven by the productionlinked incentive plibased manufacturing renewables and infrastructure sectors said india ratings in a reportthe lions share of incremental bank credit went to services where the loan book grew by rs 28 lakh crore services which accounted for 334 of fresh loans in fy23 rose to 386 in the june quarter among services aviation exhibited the fastest growth with the loan book expanding by rs 13703 crore more than three times the rs 4350crore growth seen in fy23 loans to nbfcs also saw a significant increase of rs 93037 crore equivalent to 13 of the total amount lent in the june quarter in fy23 banks lent an additional rs 31 lakh crore to nbfcs accounting for 17 of their fresh advances personal loans share in incremental bank credit has declined significantly from 39 in fy23 in the previous fiscal year banks had expanded their loan books by rs 178 lakh crore reaching rs 1367 lakh crore in this period personal loans amounted to nearly rs 7 lakh crore 39 with rs 25 lakh crore 14 allocated to home loans last year banks were more aggressively lending to retail customers resulting in sluggish growth in loans to the industry which increased by just 57 to rs 333 lakh crore from rs 315 lakh crore in the previous yearin the first quarter agriculture and allied activities also grew faster than overall bank credit banks grew their agriculture loan book by rs 119 lakh crore to nearly rs 18 lakh crore in fy23 the share of agriculture in new bank credit rs 225 lakh crore was 126the data showed that infrastructure received the