Bank Credit To Industry Decelerates In April To 7%: Reserve Bank Of India
Loan to agriculture and allied activities improved to 16.7% (YoY) in April 2023 from 10.6% a year ago.
Growth of bank credit to industry decelerated to 7% in April 2023 as compared to the corresponding month in the previous year, according to Reserve Bank data.
The Sectoral Deployment of Bank Credit – April 2023 of the RBI also said personal loans growth registered a growth of 19.4% (YoY) in April 2023 as against 14.4% a year ago, mainly driven by housing and vehicle loans.
Loan to agriculture and allied activities improved to 16.7% (YoY) in April 2023 from 10.6% a year ago.
"Credit to industry registered a growth of 7% (YoY) in April 2023 as compared with 8% in April 2022," it said.
Size-wise, 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% a year ago).
RBI further said among major industries, credit growth (YoY) to 'basic metal & metal products' and 'petroleum, coal products & nuclear fuels' accelerated in April 2023 as compared with the corresponding month of the previous year.
Credit growth to 'chemicals & chemical products', 'food processing', 'infrastructure' and 'textiles' decelerated.
Bank credit growth to the services sector accelerated to 21.6% annually in April 2023 from 11.2% a year ago, primarily due to the improved credit offtake to non-banking financial companies and trade.
RBI said data on sectoral deployment of bank credit for April was collected from 40 select commercial banks, accounting for about 93% of the total non-food credit deployed by all banks.