Robust credit growth continues, small and mid-size businesses gain

The rising pace of credit offtake continued in May, with sectors clocking year-on-year (YoY) growth between 8.7 per cent and 16.4 per cent.

The Reserve Bank of India (RBI) data showed that credit to industry grew 8.7 per cent in May (0.2 per cent in May 2021). The YoY growth in May was higher than 7.1 per cent YoY in March 2022.

Size-wise, credit to medium industries grew 49.3 per cent in May against 47.9 per cent in the year-ago month. The credit growth to micro and small industries rose to 33 per cent from 8.9 per cent a year ago. The large industries segment also grew 1.9 per cent against a contraction of 3.1 per cent in May 2021.