Credit offtake up 22% in April

Credit offtake from banks to major sectors accelerated in April this year, registering a growth of over 22.1% as against 17.1% in the previous fiscal, suggesting an upsurge in the economic activity.

All major sectors, except agriculture witnessed a higher growth of credit offtake year-on-year during the month under review compared to April last year, according to data released today by the Reserve Bank of India (RBI).

The total outstanding credit stood at Rs 36.77 lakh crore at the end of April, 2011, up from Rs 30.11 lakh crore in the same month of the previous fiscal.

Credit offtake of all sectors combined in April, 2009 was Rs 25.71 lakh crore.

"Non-food bank credit increased by 22.1% in April, 2011 as compared to 17.1% in the corresponding period of last year," the RBI said.

On annual basis, total credit to industry -- which includes infrastructure, metals, food processing, rubber, plastic and their products and engineering -- stood at Rs 16.37 lakh crore in April 2011, up 24.4% from Rs 13 lakh crore in the same month of last year.

It was Rs 10.45 lakh crore in April, 2009.

"All major sectors, except agriculture, recorded accelerated credit growth on a year-on-year basis in April, 2011," the central bank added.

Total credit agriculture and allied areas grew by only 12% in April this year as against a growth of 21.9% in the same month of 2010.

Credit offtake to the sector stood Rs 4.52 lakh crore during the month under review compared to Rs 4.04 lakh crore in April, 2010. At the end of April, 2009, it had stood at Rs 3.31 lakh crore.

"Credit to the services sector increased by 24.1% (year-on-year) in April 2011 as compared with 13.7% in the corresponding period of previous year," the RBI said.

The sector saw bank credit growing to Rs 8.96 lakh crore in April this year from Rs 7.22 lakh crore in the corresponding month of last year. In April, 2009, the figure was Rs 6.35 lakh crore.

Credit to personal loans also went by 18.4% during April, 2011, as compared with 4.4% during the year-ago period.

During the month under review, total credit offtake to the sector stood at Rs 6.91 lakh crore as against Rs 5.84 crore in April, 2010. In April, 2009, the sector has taken credit to the extent of Rs 5.59 lakh crore.