Credit growth to industry accelerates to 8.7% in May: RBI

Credit growth to industry accelerated to 8.7 per cent in May 2022, while for agriculture and allied activities, the off-take increased by 11.8 per cent, according to RBI data released on Thursday.

Data on sectoral deployment of bank credit for May 2022 has been collected from select 40 banks that account for about 93 per cent of the total non-food credit.

Credit growth to industry accelerated to 8.7 per cent in May 2022 from 0.2 per cent in May 2021.

The Reserve Bank further said that credit to medium industries grew by 49.3 per cent in May 2022 as compared with 47.9 per cent last year.

“Credit growth to micro and small industries continued to perform well, registering accelerated growth of 33 per cent from 8.9 per cent, while credit to large industries recorded a growth of 1.9 per cent against a contraction of 3.1 per cent during the same period last year,” it said.

Within industry, credit growth to all engineering, beverage and tobacco, chemicals and chemical products, infrastructure, mining and quarrying, petroleum, coal products and nuclear fuels, rubber, plastic and their products, and vehicles, vehicle parts and transport equipment accelerated in May 2022 as compared with the corresponding month of the previous year.

However, credit growth to basic metal and metal products, cement and cement products, construction, food processing, gems and jewellery, glass and glassware, leather and leather products, paper and paper products, textiles, and wood and wood products decelerated/contracted.

Advances to agriculture and allied activities grew by 11.8 per cent in May 2022 as compared with 9.4 per cent a year ago.

As per RBI, personal loans segment maintained its uptrend and grew by 16.4 per cent in May 2022 vis-a-vis 12.8 per cent in May 2021, primarily driven by housing and vehicle loans segments.

Loans to services sector grew by 12.9 per cent in May as compared with 3.4 per cent in the year-ago period, mainly due to improved off-take by NBFCs, professional services and transport operators.

On year-on-year basis, non-food bank credit registered a growth of 12.6 per cent in May 2022 as compared with 4.9 per cent a year ago.

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