Bank credit continued to expand, registering 15.1 per cent year-on-year (y-o-y) growth in July 2022 as compared with 5.1 per cent a year ago on the back robust demand across all sectors, according to Reserve Bank of India.
Credit growth to agriculture and allied activities improved to 13.2 per cent in July 2022 from 11.1 per cent a year ago, per RBI data on Sectoral Deployment of Bank Credit.
Credit growth to industry accelerated to 10.5 per cent in July 2022 from 0.4 per cent in July 2021. Size-wise, credit to large industry grew by 5.2 per cent against a contraction of 3.8 per cent a year ago.
Medium industries recorded credit growth of 36.8 per cent in July 2022 as compared with 59.0 per cent last year, while credit growth to micro and small industries accelerated to 28.3 per cent from 10.5 per cent during the same period.
Services sector credit growth improved to 16.5 per cent in July 2022 from 3.8 per cent a year ago, mainly due to improved credit offtake to ‘NBFCs’ and ‘transport operators’.
Credit growth in the personal loans sector was robust at 18.8 per cent in July 2022 vis-a-vis 11.9 per cent in July 2021 supported by ‘housing’ and ‘vehicle loans’ segments.