There is another indicator that the economy is slowly coming back on track and there are signs of bullishness. private sector capital expenditure, After a 14-month contraction, credit growth turned positive for large corporates in October. loans to medium sized firms and retail Still the loan book of banks continues to run.

Debt to large corporates rose 0.5% (y-o-y) to Rs 22.7 lakh crore in October, as against 1.8% a year ago. All major segments except services including agriculture, Industry And retail posted higher growth rates over the past year. According to the latest data on regional deployment of bank credit, total bank credit grew by 6.9% in October compared to 5.2% a year ago. reserve Bank of India on Tuesday.

Released real sector data on core sectors and economic growth point to continued optimism on the credit front. Chief Analyst Suman Choudhary said, “It is encouraging to see that Gross Capital Formation has grown by 10.7% in Q2’21-22, primarily driven by Public Capital Expenditure, though private capital formation in the current fiscal. There are also signs of an increase in expenditure.” Officer, Acute Rating and Research.

Credit growth to industry, including small and medium-sized firms, accelerated to 4.1 per cent in October 2021 from a contraction of 0.7% in October 2020. By size, credit to medium industries grew by 48.6% in October 2021, from 20.8% in the previous year. Credit to micro and small industries increased to 11.9% in October 2021 from 0.7% a year ago.

As economic activity anticipates no further increase in infections, demand for credit is also expected to rise. In its report on the Outlook for Emerging Market Banks in 2022, global rating firm Moody’s of Indian banks said, “Increased activity levels will drive credit growth, positive impact on asset risks and continued improvement in corporate financials and finance companies.” There will be a shortage of funds.” Released on Tuesday.

Retail loans grew by 8.7% in October 2021, indicated by RBI data in October 2020 mainly on account of ‘housing’, ‘vehicle loans’ and ‘loans against gold jewellery’. Credit to agriculture and allied activities registered an accelerated growth of 10.2% in October 2021 as against 7.2% in October 2020.

The slowdown in services credit growth continued, as it slowed to 2.9. % in October 2021 from 8.6% a year ago. Lending to large corporates is yet to take place on an incremental year-to-date basis.