According to the latest data released by the Reserve Bank of India (RBI), non-food bank credit in April 2023 recorded a significant year-on-year growth of 16.1%. This growth surpassed the growth rate of 11.4 percent reported in the same period a year ago.
Credit to agriculture and allied activities improved to 16.7% in April 2023 from 10.6% a year ago. Credit to industry registered a growth of 7% in April 2023 as compared with 8% in April 2022. Sizewise, credit to large industry rose by 5.3% as compared with 1.3% a year ago. Credit growth of medium industries was 19.1% as against 53.7% last year. Credit to micro and small industries registered a growth of 9.7% in April 2023 (29.8%.)
Among major industries, credit growth to basic metal and metal products and petroleum, coal products and nuclear fuels accelerated in April 2023 as compared with the corresponding month of the previous year. Credit growth to chemicals and chemical products, food processing, infrastructure, and textiles decelerated.
Credit growth to the services sector accelerated to 21.6% in April 2023 from 11.2% a year ago, primarily due to the improved credit offtake to NBFCs and trade.
Personal loan growth registered a growth of 19.4% y-o-y in April 2023 vis-a-vis 14.4% a year ago, mainly driven by housing loans and vehicle loans.