Bank credit growth (y/y) accelerated further to 18% in September 2022 as compared with 14% a quarter ago and 5.8% a year ago, states a report by the Reserve Bank of India.
The RBI has released its web publication titled ‘Quarterly Basic Statistical Returns (BSR)-1: Outstanding Credit of Scheduled Commercial Banks (SCBs), September 2022’ on its database on the Indian Economy (DBIE) portal. It captures various characteristics of bank credit such as occupation/activity and organisational sector of the borrower, type of account and interest rates. Data reported by 90 SCBs (excluding Regional Rural Banks) are presented for bank groups, population groups and states.
Key points
- Bank credit growth (y/y) accelerated further to 18% in September 2022 as compared with 14% a quarter ago and 5.8% a year ago.
- Private sector banks continued to outpace public sector banks and have increased their share in total credit to 38.4% in September 2022 from 37.5% a year ago and 29.6% five years ago.
- Personal loans recorded 21.9% growth (y/y) in September 2022; it accounted for one-third of the total incremental credit during the last one year.
- Credit growth momentum in the industrial sector continued for the fourth successive quarter and recorded double-digit growth in September 2022.
- The share of individuals in the total credit reached an all-time high of 44.4% in September 2022; women borrowers accounted for 22.6% of borrowings by individuals.
- Annual growth in working capital loans by banks, which stood in the contraction zone in March 2021, increased successively thereafter and stood at 16.5% (y/y) in September 2022.
- The overall weighted average lending rate (WALR) on outstanding credit increased by 33 basis points (bps) during the quarter ending September 2022.
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