The Reserve Bank of India’s (RBI) latest data reveals a significant increase in bank credit to the industry sector. According to the sectoral deployment of bank credit for March 2024, industry credit rose by 8.5% year-on-year (y-o-y), marking a notable improvement from 5.6% in the same month of the previous year.
Data collected from 41 scheduled commercial banks, which account for approximately 95% of the total non-food credit, also indicates an overall non-food credit growth of 16.3%, surpassing last year’s 15.4%. This uptrend underscores the resilience of India’s banking sector in supporting various economic segments.
Key highlights of sectoral credit deployment include:
Agriculture and allied activities: Credit growth surged to 20.1% (y-o-y), significantly higher than the previous year’s 15.4%.
Industry: With an 8.5% growth, the industry sector exhibited improved credit flows, especially in sectors such as chemicals and chemical products, food processing, and infrastructure. However, credit growth to basic metal and metal products showed signs of moderation.
Services sector: Growth in credit to the services sector climbed to 20.2% (y-o-y) compared to last year’s 19.6%, bolstered by stronger credit to transport operators and commercial real estate. On the downside, credit to non-banking financial companies (NBFCs) and trade saw a deceleration.
Personal loans: Personal loan growth slowed to 17.7% (y-o-y) from the previous year’s 21.0%, primarily due to reduced growth in vehicle and other personal loans.
