The Reserve Bank has released its web publication ‘Quarterly Basic Statistical Returns (BSR)-1: Outstanding Credit of Scheduled Commercial Banks (SCBs), June 2022’ on its Database on Indian Economy (DBIE). Data reported by 89 SCBs (excluding Regional Rural Banks) are presented for bank groups, population groups, and states.
According to the data, bank credit growth (y/y) continued on its upward trajectory and stood at 14% in June 2022 as compared with 10.7% a quarter ago and 5.8% a year ago.
The personal loans segment continued to lead the credit expansion and recorded 20.8% growth (y/y) in June 2022.
Bank credit to industry gained momentum and its y/y growth increased to 7.2% in June 2022 from 4.8% a quarter ago; working capital and term loans have also moved to a double-digit growth trajectory.
The share of individuals in total credit increased to 44.1% in June 2022 from 43.7% in the previous quarter; credit growth for women borrowers outpaced the growth in loans availed by male customers.
Private sector banks continued to record higher credit growth than public sector banks. The share of private sector banks in total credit has increased to 38% in June 2022 from 35.3% in June 2020 and 22.2 % in June 2015; they accounted for 47.8% of the incremental credit during the last year (June 2022 over June 2021).
All the regions and population groups recorded double-digit credit growth (y/y) in June 2022.
After declining for ten successive quarters, the weighted average lending rate (WALR) on outstanding credit increased by 21 basis points (bps) during Q1:2022-23: the increase was significant for personal loans (31 bps) and finance (36 bps).
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