Bank Credit Growth Rises 14% In June Quarter: RBI

Bank credit growth (y-o-y) continued on its upward trajectory and stood at 14.0 per cent in June 2022 as compared with 10.7 per cent a quarter ago and 5.8 per cent a year ago, RBI revealed. Personal loans segment continued to lead the credit expansion and recorded 20.8 per cent growth (y-o-y) in June 2022. Bank credit to industry gained momentum and its y-o-y growth increased to 7.2 per cent in June 2022 from 4.8 per cent a quarter ago; working capital and term loans have also moved to double-digit growth trajectory. Share of individuals in total credit increased to 44.1 per cent in June 2022 from 43.7 per cent in the previous quarter; credit growth for female borrowers outpaced the growth in loans availed by male customers. Private sector banks continued to record higher credit growth than public sector banks. The share of private sector banks in total credit has increased to 38.0 per cent in June 2022 from 35.3 per cent in June 2020 and 22.2 per cent in June 2015; they accounted for 47.8 per cent of the incremental credit during the last one year (June 2022 over June 2021). All the regions and population groups recorded double-digit credit growth (y-o-y) in June 2022. After declining for ten successive quarters, weighted average lending rate (WALR) on outstanding credit increased by 21 basis points (bps) during Q1:2022-23: the increase was significant for personal loans (31 bps) and finance (36 bps).

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