Industry's share of non-food bank credit hits record low of 26.6%

Economists at India Ratings blamed the recent surge in interest rates

The share of industry in the total non-food bank credit declined to a record low of 26.6 per cent at the end of January 2023, according to the Reserve Bank of India (RBI) data. This share stood at 28.6 per cent as of March 2022, and 45.8 per cent around a decade ago, at the end of March 2013.

Credit to industry grew at a healthy pace – between 10 and 14 per cent — in most months during the first half of 2022-23 (FY23), in contrast to the slowdown seen after November. The outstanding bank credit to industry grew 8.7