As per Basic Statistical Return on Credit by Scheduled Commercial Banks (SCBs) India – Issued by ‘March 2022’ reserve Bank of IndiaBoth industrial and personal loans accounted for about 27 per cent credit share in March 2022.
Similarly, credit to the industrial sector witnessed a growth of 4.7% in 2021-22, after a decline in the previous year.
Earlier this month, finance Minister Nirmala Sitharaman Pushed the corporate sector to increase investment in manufacturing.
Further, the RBI said credit demand from the retail sector has become more specific in recent years, with the share of small-sized loans also increasing rapidly.
Despite the price effect on loan size over time, the share of loans below Rs 1 crore rose to about 48% in March 2022 from around 39% five years ago, while the share of loans above Rs 10 crore decreased from about 40% to about 40%. 49%.
The share of loans with interest rate below 7 per cent increased to 23.6 per cent in March 2022 from 15.1 per cent a year ago.
It added that the declining share of public sector banks (PSBs) in total bank credit continues.
The share of PSBs in total lending by SCBs stood at 54.8 per cent in March 2022, up from 65.8 per cent five years ago and 74.2 per cent ten years ago.
On the other hand, the share of private sector banks almost doubled to 36.9 per cent in the last ten years.
Bank branches in urban, semi-urban and rural areas maintained double-digit annual growth in credit in March 2022, while credit growth for metropolitan branches increased significantly to 9.2 per cent from 1.4 per cent in the previous year.
Maharashtra (26.2 percent), National Capital Region (National Capital Region) of Delhi (11.3 percent), Tamil Nadu (9.2 percent) and Karnataka (6.8 per cent) together account for more than half of the loans given by banks.
Inputs from PTI