Bank credit to basic metal and metal products jumps for first time in 4 years

For the fiscal year (FY) 2022-23, bank credit jumped to Rs 3.43 lakh crore.

Bank credit to basic metal and metal products were at the highest level in four years, data from the Reserve Bank of India (RBI) Handbook of Statistics on the Indian Economy 2022-23 showed.

For the fiscal year (FY) 2022-23, bank credit to the segment jumped to Rs 3.43 lakh crore. The same had fallen to Rs 3.33 lakh crore in 2019-2020, Rs 3.05 lakh crore in 2020-21 and Rs 2.88 lakh crore in 2021-2022.

Credit to Iron and Steel increased to Rs 2.28 lakh crore from Rs 1.87 lakh crore from FY22. Whereas credit to other metal and metal products jumped to Rs 1.14 lakh crore in FY23 from Rs 84,701 crore in FY19.

Earlier, commercial banks' credit to the industry grew by 5.2 percent year-on-year in July, compared to a growth of 10.5 percent in the previous year, according to data from the Reserve Bank of India (RBI).

Also read: Industry credit grows by 5.2% YoY in July: RBI data

The data further indicates that credit growth to agriculture and allied activities improved to 16.8 percent year-on-year in July 2023, up from 13.2 percent a year ago.

The central bank collects data on the deployment of bank credit from 40 selected scheduled commercial banks (SCBs), which account for approximately 93 percent of the total non-food credit deployed by all SCBs.

According to the release, on a year-on-year basis, non-food bank credit saw a growth of 14.8 percent in July 2023, compared to 15.1 percent in the previous year.