Core Insights - The festive season in India is expected to drive consumer spending, with banks like Axis Bank and HDFC Bank launching special offers to capitalize on this trend [1][5][6] - The Reserve Bank of India (RBI) reported that overall bank credit growth is at 10%, down from 14% a year earlier, indicating a slowdown in major loan components [2][8] - Retail loans, which typically offer higher margins, are being targeted by banks to boost their asset base and mitigate earnings pressure during periods of reduced policy rates [8] Bank Initiatives - Axis Bank has partnered with leading brands to provide curated deals and discounts on credit cards, along with easy EMIs for large purchases [1][8] - HDFC Bank has introduced its annual 'Festive Treats' offers, collaborating with various brands across multiple sectors including apparel and travel [5][8] - ICICI Bank is set to launch its 'Festive Bonanza' offers, while Axis Bank will introduce special discounts and cashback offers aligned with GST cuts effective September 22 [6][8] Credit Growth Trends - Loan growth in agriculture and allied activities has decreased to 7% year-on-year, down from 17% a year ago, while industrial credit growth has fallen to 6% from 8% [7][8] - Mortgage growth has slowed to around 10% year-on-year in 2025, down from 18% previously, indicating a need for improvement in this segment to boost overall loan growth [9]
Festive offers, tax cuts to fuel retail lending by banks
The Economic Times·2025-09-14 19:15