Banks’ non-food credit grew by 11.3% in April 2022, from 4.7% in the previous month, RBI data showed on Tuesday.
Lending to agriculture and related activities continued to grow at 10.6% in April, compared to a rise of 10.7% in the previous month, according to the RBI Bank Credit Sector Rollout – April 2022.
The growth of advances to industry stood at 8.1% over the month against a contraction of 0.4% in April 2021.
From a size perspective, credit to medium industries recorded growth of 53.5% in April 2022 compared to 44.8% last year.
Credit to micro and small industries rose 29% from 8.7%, while credit to large industries recorded growth of 1.6% from a contraction of 3.6% in April 2021, the data showed.
Within the industry, growth advances to all sectors of engineering, beverages and tobacco, chemicals and chemicals, food processing, gemstones and jewelry, infrastructure, leather and leather products, mining and quarrying, petroleum, coal products and nuclear fuels, rubber, plastics and their products and vehicles, vehicle parts and transportation equipment segments accelerated in April 2022 compared to the month of the previous year.
However, growth in credit to base metals and metal products, cement and cement products, construction, glass and glassware, paper and paper products, textiles and wood, and wood has slowed down.
Credit to the services sector increased by 11.1% in April 2022, compared to 2.4% the previous month, mainly due to NBFCs, trade, tourism, hotels and restaurants and operators of transportation.
The personal loans segment continued to perform well, recording growth of 14.7% compared to 12.1% in April 2021, mainly driven by home and auto loans.