On a year-on-year basis, non-food bank credit grew 16.0 per cent in August 2022 as against 6.7 per cent a year ago, as credit growth to industry jumped to 11.4 per cent from 1.5 per cent in August 2022. In August 2021, according to reserve Bank of IndiaLatest data on regional deployment in bank credit.
Credit to large industry grew by 6.4 per cent against a contraction of 2.6 per cent a year ago as large corporates flock to banks to meet their working capital requirements. Credit to medium-sized firms grew by 35.6 per cent in August 2022 from 52.3 per cent in the previous year, while credit growth to micro and small industries increased to 28.2 per cent from 12.1 per cent during the same period.
Within industry, ‘all engineering’, ‘basic metals and metal products’, ‘beverage and tobacco’, ‘cement and cement products’, ‘chemical and chemical products’, ‘food processing’, ‘glass and glassware’ credit growth to ‘infrastructure’, ‘leather and leather products’, ‘petroleum, coal products and nuclear fuels’, ‘rubber, plastics and their products’, ‘vehicles, vehicle parts and transport equipment’ and ‘ There was a boom in ‘wood and wood products’. 2022 as compared to the same month of the previous year. However, credit growth for ‘Construction’, ‘Gems and Jewellery’, ‘Mining and Quarrying’, ‘Paper and Paper Products’ and ‘Textiles’ declined/contracted.
Primarily driven by the ‘housing’ and ‘vehicle loan’ segments, retail loan growth accelerated to 19.5 per cent in August 2022 from 12.8 per cent a year ago.
Credit growth to the services sector rose to 17.2 per cent in August 2022 from 2.1 per cent a year ago, mainly due to better credit offtake to the ‘NBFC’ and ‘business’ sectors.
Credit growth to agriculture and allied activities remained strong at 13.4 per cent (13.0 per cent a year ago) in August 2022.