Credit to private sector gains steam in May ahead of full impact from rate cut

► COMMERCIAL BANKS EXPAND OUTSTANDING PRIVATE CREDIT BY RS.133BN ► THAT BRINGS TOTAL PRIVATE CREDIT IN FIVE MONTHS TO A ΜΑΜΜΟΤΗ RS.495BN ► MAY CREDIT TRANSLATES TO A FASTER 16.1% YOY GROWTH IN PRIVATE CREDIT ► CREDIT SPREAD ACROSS ALL SECTORS OF THE ECONOMY

- 

Credit to the private sector by the licensed commercial banks picked up pace in May. This is after a brief slowdown in April caused by the festive season holidays.

The movement indicates that appetite for credit remains high under considerably low borrowing costs while the banks kept their lending spigots wide open, seeking to extend their roughly two year long growth in private credit. According to the latest data, licensed commercial banks have expanded their total outstanding private sector credit by a robust Rs.132.9 billion in May, picking up from the Rs.87.0 billion growth in April.