The Reserve Bank of India (RBI) on February 28, notified regarding the data on Sectoral Deployment of Bank Credit for the month of January 2023, collected from 40 select scheduled commercial banks, accounting for about 93 percent of the total non-food credit deployed by all scheduled commercial banks.
The following are highlights of the sectoral deployment of bank credit:
• Credit growth to agriculture and allied activities improved to 14.4 percent (y-o-y) in January 2023 from 10.4 percent a year ago.
• Credit to industry registered a growth of 8.7 percent (y-o-y) in January 2023 compared to 5.9 percent in January 2022. Size-wise, credit to large industries grew by 6.5 percent as compared with 0.2 percent a year ago. Credit growth of medium industries was 18.1 percent as against 52.4 percent last year. Credit to micro and small industries registered a growth of 15.2 percent in January 2023 (23.3 percent a year ago).
• Within industry credit growth to ‘basic metal & metal products’, ‘beverage & tobacco’, ‘cement & cement products’, ‘chemicals & chemical products’, ‘food processing’, ’glass & glassware’, ‘mining & quarrying’, ‘petroleum, coal products & nuclear fuels’, ‘vehicles, vehicle parts & transport equipment’ and ‘wood & wood products’ accelerated in January 2023 as compared with the corresponding month of the previous year. Credit growth to ‘all engineering’, ‘construction’, ‘gems & jewellery’, ‘infrastructure’, ‘leather & leather products’, ‘paper & paper products’, ‘rubber, plastic & their products’, and ‘textiles’ decelerated/contracted.
• Credit to services sector rose by 21.5 percent (y-o-y) in January 2023 compared with 5.7 percent a year ago, primarily due to the improved credit offtake to ‘NBFCs’.
• Personal loan growth accelerated to 20.4 percent (y-o-y) in January 2023 from 12.8 percent a year ago, largely driven by ‘housing’ and ‘vehicle loans’.
[Press Release: 2022-2023/1801]
