Commercial bank credit to midsize firms up 27.9%, shows RBI data

Commercial bank credit (under priority sector) to medium-size enterprises covering the manufacturing and services sector rose 27.9 per cent in 12 months up to January 2021, up from 9.3 per cent a year ago.

The Reserve Bank of India (RBI) data in the revised framework showed that the outstanding loan book stood at Rs 1.63 trillion, as against Rs 1.27 trillion in January 2020.

Bankers said the economic recovery has begun to translate into a rise in demand for loans. 

Also, steps such as emergency credit lines and government guarantee-backed loans schemes to firms facing the brunt of the coronavirus pandemic have supported credit offtake in manufacturing and services sector entities.