Lending to the household sector in which individuals, proprietorships, Hindu Undivided Family (HUF) and partnership firms, accounted for 53.8 percent in March 2022. Significantly, loans to women borrowers, who accounted for 22.5 per cent of bank credit, grew by 13.9 per cent during 2021-22. reserve Bank of India Release said.
Credit growth in the industry (y-o-y) increased to 4.8 per cent in March 2022, as against 2.0 per cent in the previous quarter and negative growth for eight consecutive quarters before that. The growth was mainly on account of credit offtake by the private corporate sector and registered a growth of 5 per cent (Y-o-Y) in March 2022 as compared to 1.2 per cent in the previous quarter. Further, growth in working capital credit accelerated in successive quarters of 2021-22 to reach 7.1 per cent in March 2022.
Retail loans continued to perform well and its share of total loans increased to 27.7 per cent in March 2022, from 26.3 per cent a year ago and 19.9 per cent five years ago.
Bank credit growth (YoY), which stood at 5.1 per cent in March 2021, accelerated in successive quarters of 2021-22 to go into double digits by March 2022, which, according to economists, is set to gain momentum after the lifting of restrictions. Shows economic recovery. imposed during the pandemic induced lockdown.
RBI said the weighted average lending rate (WALR) on outstanding loans declined by 42 basis points (bps) during 2021-22 and 24 bps during the quarter ended March 2022.