On a year-on-year basis, non-food banks Credit Continued to expand, registering a growth of 15.1 percent in July 2022 as compared to 5.1 percent a year ago reserve Bank of IndiaLatest release on sectoral data on bank credit.
“The banking system is witnessing a healthy recovery in credit growth, led by a revival incorporated segment, while growth in retail and SMEs remains strong. Deposit growth remains modest, but is expected to see some growth in the current rising interest rate regime.”
Credit growth to industry increased from 0.4 per cent in July 2021 to 10.5 per cent in July 2022. Size-wise, credit to large industry grew by 5.2 per cent against a contraction of 3.8 per cent a year ago. Medium industries registered a credit growth of 36.8 per cent in July 2022 as compared to 59.0 per cent in the previous year, while the credit growth of micro and small industries increased from 10.5 per cent to 28.3 per cent during the same period. Credit bureau studies show that the asset quality of borrowers under the government’s ECLGS scheme has improved. This can add to the comfort of the lenders.
The credit growth in the retail loan sector was higher at 18.8 per cent in July 2022 as compared to 11.9 per cent in July 2021 supported by the ‘housing’ and ‘vehicle loan’ segments. The RBI said credit growth in the services sector rose to 16.5 per cent in July 2022 from 3.8 per cent a year ago, mainly due to better lending to ‘NBFCs’ and ‘transport operators’. Credit growth to agriculture and allied activities also increased to 13.2 per cent in July 2022 from 11.1 per cent a year ago.