Bank loan The data shows that agriculture and allied activities continued to perform well, registering an accelerated growth of 11.3 per cent in August 2021 as compared to 4.8 per cent in August 2020.
The Reserve Bank of India (RBI) on Thursday released data related to ‘Sectoral Deployment of Bank Credit – August 2021’.
Credit to micro and small industries increased to 10.1 per cent in August 2021 from a contraction of 1.1 per cent a year ago.
As per the data, credit to large industries has declined by 1.7 per cent as compared to an increase of 0.5 per cent in August 2020.
Credit growth to the services sector decelerated to 3.5 per cent in August 2021 from 10.9 per cent earlier, mainly due to contraction in credit growth. NBFC and commercial real estate.
Personal loans registered an accelerated growth of 12.1 per cent as compared to 8.5 per cent a year ago, mainly due to faster credit growth in housing, vehicle loans and loans. gold jewelery.
Separately, the RBI also released a report on ‘Outstanding loans of scheduled commercial banks for the June 2021 quarter’.
The data shows that bank credit growth on a year-on-year basis accelerated to 5.8 per cent in June 2021 from 5.1 per cent a quarter ago.
Personal loan growth since the start of the COVID-19 pandemic rose to 14.8 per cent on an annualized basis after some moderation. Its share in bank credit rose to 26.6 per cent in June 2021, from 24.5 per cent a year ago and 18.9 per cent five years ago.
Bank credit to the industrial sector continued to decline, resulting in a decline in its share of total credit to 28.6 per cent (30.8 per cent a year ago and 40.7 per cent five years ago).
Credit to individuals in the household sector continued to increase. Their share in total loans rose to 43.3 per cent from 34.2 per cent five years ago, the data showed.
Women borrowers accounted for around 22 per cent of the loan amount given to individuals.
Working capital loans (such as cash loans, overdrafts and demand loans) accounted for a third of total loans and followed a seasonal contraction in the first quarter of the current fiscal. Still, their annual growth turned positive in the latest quarter.
With their sharp credit growth, private sector banks have increased their share of total credit from 25.7 per cent to 36.6 per cent at the expense of public sector banks, whose share has come down from 69.0 per cent to 58.1 per cent in the same period. .