Mumbai, July 29

Bank credit registered a robust growth of 13.7 per cent in June 2022 as compared with 4.9 per cent a year ago on the back of all round improvement in credit demand in the agriculture, industry, services and personal loan segments.

Credit to agriculture and allied activities grew by 13 per cent in June 2022 as compared with 10.6 per cent a year ago, per Reserve Bank of India’s sectoral deployment of bank credit statement.

Credit to industry continued to expand, registering 9.5 per cent growth in June 2022 against a contraction of 0.6 per cent in June 2021.

Size-wise, credit to medium industries grew by 47.6 per cent in June 2022 as compared with 59 per cent last year, per RBI data.

Credit growth to micro and small industries accelerated to 29.6 per cent in June 2022 from 11.6 per cent a year ago, while credit to large industries recorded a growth of 3.3 per cent against a contraction of 4.8 per cent during the same period.

Credit growth to services sector improved to 12.8 per cent in June 2022 as compared with 4.0 per cent a year ago, mainly due to improved offtake to ‘NBFCs’, ‘professional services’, ‘transport operators’ and ‘trade’, the central bank said.

Personal loans segment maintained its uptrend and grew by 18.1 per cent in June 2022 vis-a-vis 12.2 per cent in June 2021, primarily driven by ‘housing’ and ‘vehicle loans’ segments.

State Bank of India’s Economic Research Department, in its note “Ecowrap”, observed that the sector-wise credit data for June 2022 indicates that there is a substantial improvement in incremental credit to each and every sector.

“Specifically, credit growth to MSME sector has expanded by ₹52,800 crore in current fiscal as against a de-growth of ₹ 61,000 crore in similar period previous fiscal.

“Retail loans expanded by ₹1.34-lakh crore against a de-growth of ₹26,500 crore last year. Clearly, the evolving war seems to have not significantly impacted sentiments on the ground,” the report said.

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