Earlier, the industry segment accounted for 27 per cent Bank credit, which was roughly equal to that of services and personal loans.
The decline can be attributed to increased borrowing by manufacturing firms as the industry recorded lower than expected rates of bank credit.
“According to the data on the regional deployment of bank credit released by reserve Bank of IndiaNon-food credit at the end of October 2022 stood at Rs 129 lakh crore – a year-on-year growth of 8.7 per cent. Of this, credit to industry stood at Rs 33 lakh crore, a growth of 4.3 per cent during the current financial year. opposite of this, loan Services sector and personal loans grew by 10.1 per cent and 11.5 per cent to Rs 33.2 lakh crore and Rs 37.7 lakh crore, respectively. Industry has been a major recipient of bank credit. In the 1970s, industry accounted for 60 percent of bank loans. Loans to businesses and industries have now come down. This can be linked to the growth of home loans and other personal loans over the years.
Consumer loans, which form an integral part of personal loans, have registered the highest growth of 25.7 per cent, however, their share of total loans is very low at Rs 34,727 crore, TOI reported.
home loan Banks’ portfolio registered a growth of 8.4 per cent and stood at Rs 18.3 lakh crore. Credit card dues, which stand at around Rs 1.8 lakh crore, now account for 1.4 per cent of total bank credit.
Credit growth in the services segment was driven by loans to the non-banking finance companies. Banks have NBFC loans of Rs 12.6 lakh crore in their accounts, a growth of 16 per cent during the current financial year.
The highest growth (Rs 50,641 crore) was recorded from loans to businesses in the petroleum and energy segment during the current financial year. An important reason for this increase is the rising crude oil prices.
An additional amount of Rs 43,234 crore was given to the infrastructure sector, of which half the loans went to the power and road sectors.
(With inputs from TOI)