The year-on-year growth in bank credit to individuals against shares and bonds was at a 19-month low in August, according to the sectoral deployment data released by the Reserve Bank of India on Tuesday.

Loans to shares and bonds grew merely 0.9% on year to Rs 9,807 crore during the month under review, compared to a 26.8% growth in the year-ago period.

Market caution and stricter oversight subdue growth

In April, loans to this segment touched a high of Rs 10,488 crore. They fell by 10.3% in May. The growth has been subdued in the segment since June. The slowdown was mainly driven by market caution and stricter regulatory oversight from the central bank.

“This segment saw a muted demand, possibly due to subdued equity market performance and risk appetite among lenders and borrowers.

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