Services sector credit growth still slow despite Covid relaxations

Broad-based credit expansion is expected over the next two to three quarters

Bank credit to the services sector has remained in the slow lane in FY22 despite relaxations after the second wave of the pandemic.

Fresh bank loans to services industries such as trade, non-banking financial companies, commercial real estate, transporters, and aviation are up 2.9 per cent year-on-year in April-October 2021, just above the 2.7 per cent in the same period in FY21, according to the data from the Reserve Bank of India.

Outstanding bank credit to services inched up to Rs 26 trillion on October 22, 2021, against Rs 25.3 trillion a year ago. The figure was Rs 26.5 trillion at the