Credit to MSMEs, agriculture rises; personal loans register 12.6% growth

Credit growth to agriculture and allied activities accelerated 11.3%, compared with 4.7% the previous year

The credit to medium-sized industrial units posted a robust growth of 43.8 per cent in April, compared with a contraction of 6.4 per cent a year ago, according to Reserve Bank of India data.

 

Meanwhile, credit growth to small and micro industries accelerated by 3.8 per cent in April, compared with a contraction of 2.2 per cent a year ago. However, cre­d­it to large industries contracted by 1.9 per cent, as against a growth of 2.7 per cent a year ago. On a year-on-year (YoY) basis, non-food bank credit growth stood at 5.7 per cent in April, as against 6.7 per cent last year.

 

Bankers said activity in the first month of the new financial year is always subdued and local lockdowns imposed to contain the spread of the second wave of Covid-19 pandemic impacted demand.

 

Credit growth to agriculture and allied activities accelerated 11.3 per cent, compared with 4.7 per cent the previous year.

 

Within industry, loans to segments like food processing, textiles, gems & jewellery showed higher growth rate in April than the corresponding month last year.

 

However, pace of credit growth to mining & quarrying, beverages & tobacco, petroleum coal products, vehicles, and vehicle parts & transport equipment either slowed or contracted.

 

Credit growth to services sector decelerated by 1.2 per cent in April 2021 from 10.6 per cent a year ago, mainly due to deceleration in credit growth to NBFCs and marginal contraction in credit to transport operators.

 

Personal loans registered a growth of 12.6 per cent in April 2021 as compared to 12.3 per cent a year ago. It was primarily due to accelerated growth in vehicle loans, loans against gold jewellery, and credit card outstanding, RBI added.