There is substantial improvement in additional credit to every sector: SBI report
Mumbai, July 29
Bank credit recorded robust growth of 13.7% in June 2022 against 4.9% a year ago, thanks to an overall improvement in credit demand in the segments of agriculture, industry, services and personal loans.
Credit to agriculture and related activities grew by 13% in June 2022, from 10.6% a year ago, according to the Reserve Bank of India’s bank credit statement sector rollout.
Loans to industry continued to expand, recording growth of 9.5% in June 2022 against a contraction of 0.6% in June 2021.
In terms of size, credit to medium industries grew by 47.6% in June 2022, compared to 59% last year, according to RBI data.
Growth in credit to micro and small industries accelerated to 29.6% in June 2022 from 11.6% a year ago, while credit to large industries recorded growth of 3.3% from a contraction of 4.8% over the same period.
Credit growth to the services sector improved to 12.8% in June 2022 from 4.0% a year ago, mainly due to improved drawdowns on NBFCs, services professionals”, “transport operators” and “trade”, the central bank said.
The personal loans segment maintained its upward trend and increased by 18.1% in June 2022 compared to 12.2% in June 2021, mainly driven by the “housing” and “auto loans” segments.
State Bank of India’s Economic Research Department, in its “Ecowrap” note, observed that sectoral credit data for June 2022 indicates that there is substantial improvement in additional credit to every sector.
“Specifically, credit growth to the MSME sector increased by ₹52,800 crore in the current financial year, compared to a decrease of ₹61,000 crore in the similar period of the previous financial year.
“Personal loans increased by ₹1.34 crore compared to a decrease of ₹26,500 crore last year. ground,” the report said.
July 29, 2022