Bank Credit Growth Driven By Increased Loans To Retail, Agriculture And MSME Sectors: Report

The latest data on sectoral deployment of bank credit put out by the Reserve Bank of India (RBI) states that bank credit grew by 7.1 per cent in November 2021, driven by greater growth in agriculture, retail and MSME loans.

On an year-on-year (YoY) basis, credit to the agriculture and allied sectors shot up by 10.4 per cent in November 2021 from 7 per cent in the same month of 2020.

Similarly, demands for vehicle loans along with ‘consumer durables’ led to an 11.6 per cent YoY growth in retail loans in November of last year.

Moreover, the central government’s push towards reviving the economy through MSMEs meant that credit to micro and medium industries was enhanced by 48.7 per cent and 12.7 per cent in the given month of 2021.

On the other hand, the credit to the large industries and services sector remained at the same level as the preceding year and fell by 3.6 per cent in November 2021 respectively.

The RBI collected this sectoral data from about 33 commercial banks that took into account about 90 per cent of the deployed non-food credit in question, Economic Times reports.