The Reserve Bank of India (RBI) has released data on the sectoral deployment of bank credit for June 2023, gathered from 40 select scheduled commercial banks, which accounts for approximately 93% of the total non-food credit deployed by all scheduled commercial banks.
Compared to the same period last year, non-food bank credit experienced a growth of 16.3% in June 2023, marking an increase from 15.0% a year ago.
Here are the key highlights of the sectoral deployment of bank credit:
- Credit to agriculture and allied activities improved significantly, registering a year-on-year growth of 19.7% in June 2023, compared to 12.9% in the previous year.
- Credit to the industry sector grew at a rate of 8.1% year-on-year in June 2023, slightly lower than the 9.5% growth in June 2022. Among different industry sizes, credit to large industries rose by 6.4%, credit to medium industries grew by 13.2%, and micro and small industries saw an increase of 13.0%.
- Among major industries, credit growth to basic metal and metal products and textiles accelerated in June 2023 compared to the same month the previous year, while credit growth to chemicals and chemical products, food processing, and infrastructure decelerated.
- Credit growth to the services sector showed a notable acceleration, reaching 26.7% year-on-year in June 2023, up from 12.8% a year ago. This was mainly driven by an improved credit offtake to NBFCs and trade.
- Personal loans also experienced a substantial growth of 20.9% year-on-year in June 2023, supported primarily by increased lending for housing and vehicle loans, compared to 18.1% growth in the previous year.
- This data reflects the changing trends in credit growth across various sectors, indicating the economic dynamics in June 2023.