You are here: Home » Finance » News » Banks
Business Standard

Bank retail lending moderates in December, farm and SME credit accelerates

Impact of Covid-19-induced economic disruption continues to linger, lenders say

Topics
Retail lending | Bank loans | bank credit growth

Abhijit Lele  |  Mumbai 

bank, credit, growth, loans, funding, capital, cash, m&a, payment
According to Reserve Bank of India data Retail loans registered a growth of 9.5 per cent (year-on-year basis) in December 2020 as compared with 15.9 per cent growth in December 2019

extended retail loans covering housing, vehicles, credit cards, etc worth Rs 18,840 crore in December 2020. The scale of lending in December was muted compared to volumes in Octoer and November 2020, when lent Rs Rs 39,780 crore and 33,107 crore respectively.

The business in these three months was marked by activity driven by the festive season and the start of busy season. Still, the impact of Covid-19-induced economic disruption continues to linger, bankers said.

According to Reserve Bank of India data retail loans grew 9.5 per cent year-on-year basis in December 2020 as compared with 15.9 per cent growth in December 2019. The outstanding retail credit was Rs 26,63,439 crore.

ALSO READ: Economy to witness 'V-shaped' rebound with 11% growth in FY22: Eco Survey

RBI in a statement said the non-food credit growth (Y-o-Y basis) was 5.9 per cent in December 2020 as compared to seven per cent in December 2019. For agriculture and allied activities, growth accelerated to 9.4 per cent in December 2020 from 5.3 per cent in December 2019.

Credit to industry contracted by 1.2 per cent in December 2020 as against 1.6 per cent growth in December 2019. Credit to micro & small industries clocked growth of 1.2 per cent in December as compared to 0.1 per cent a year ago.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Fri, January 29 2021. 21:14 IST
RECOMMENDED FOR YOU
.