Bank credit grows to US$ 1.46 trillion in September 2021

The Scheduled Banks’ Statement of Position in India as of September 24 reveals that Bank credit increased to US$ 1.46 trillion (Rs 109.57 lakh crore) in comparison to US$ 1.374 trillion (Rs 102.72 lakh crore) during the corresponding period in 2020. The period also saw an increase of bank deposits to US$ 2.08 trillion (155.95 lakh crore) as against US$ 1.908 trillion (Rs 142.62 lakh crore) registered on September 24, 2021. The growth signals a 6.7% increase in bank credit and a 11.4% increase in bank deposit. 

Data from the RBI for the period of August reveals the sector distribution of credit growth as follows: 

• Micro and Small Industries – Credit growth was registered at 63.4% as against 4.4% from the corresponding period in 2020. 
• Agriculture and allied activities – Credit growth rose to 11.3% during the period as against 4.8% in 2020.  
• Services sectors – The period saw credit growth moderating to 3.5%  as against 10.9% in August 2020 owing to contractions exhibited by the commercial real estate and NBFC spaces. 
• Personal loans – Growth in vehicle loans, gold jewellery loans and housing loans have bolstered credit growth in the space  to 12.1% during the period. 

At an industrial level, credit growth is seen to have accelerated in the textiles, mining, chemicals, petroleum, plastic products, engineering and jewellery industries. However, industries such as food processing, leather, automobile components, metal products as well as beverages saw a decline in credit growth.