RBI said yesterday that bank credit growth continued to be driven by growth in personal loans, which accounted for 27.4% of total credit in September 2021, down from 25.0% a year ago and 19.3% five years ago.
Demand for bank credit from the industrial sector has moderated during the COVID-19 pandemic; its share of outstanding loans fell to 28.0% in September 2021, from 29.9% a year ago.
While demand for bank credit from the private business sector continued to moderate and the share of credit from the household sector2 increased further, the share of borrowers with relatively small loans (with a credit limit of up to one crore of rupees) increased to 47.2% of the total. credit vis-à-vis 44.4 percent a year ago and 37.1 percent five years ago.
The share of individual female borrowers in total loans was 9.8% by amount and 31.3% by number of loan accounts in September 2021; their share of incremental credit over the past year (September 2021 vs. September 2020) was higher at 20.5% by loan amount and 44.8% by number of accounts.
Private sector banks continued to lead lending expansion and increased their share of total credit to 37.5% in September 2021, from 35.9% a year ago and 26.4% a year ago. five years.
The weighted average lending rate (WALR) on outstanding credit decreased by 10 basis points (bps) in the quarter ended September 2021 and by 61 bps over the past year.
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