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Credit growth to industry improves to 6.4% in January, RBI data shows

Credit growth to the services sector stood at 7.3 percent in January 2022 as compared to 8.1 percent a year ago

February 28, 2022 / 09:20 PM IST
The company indulged in unauthorised use of logos of Reserve Bank and Central Bureau of Investigation for recovery from the borrowers in gross violation of the Fair Practices Code, the RBI said.

The company indulged in unauthorised use of logos of Reserve Bank and Central Bureau of Investigation for recovery from the borrowers in gross violation of the Fair Practices Code, the RBI said.

Bank credit growth to industry improved to 6.4 percent in January 2022 from 0.7 percent in January 2021, the Reserve Bank of India (RBI) data released on February 28 shows, signalling a gradual recovery in the economy.

Loan growth took a hit following the outbreak of coronavirus, as businesses struggled to stay afloat but, the situation has improved over the last year with states going in for restrictions instead of lockdown.

Massive liquidity push by the central bank and supportive measures announced by the government, to boost growth, too, helped the economy to regain momentum.

Size-wise, credit to medium industries registered a high double-digit growth of 74.7 percent in January 2022, up from 21.8 percent in the previous year.

Credit growth to micro and small industries accelerated to 19.7 percent from 0.5 percent and credit to large industries recorded a marginal growth of 0.5 percent against a contraction of 0.2 percent during the same period, the data shows.

Credit to agriculture and allied activities continued to grow, registering a growth of 10.4 percent in January 2022 as compared to 8.5 percent in January 2021.

Credit growth to the services sector stood at 7.3  percent in January 2022 as compared to 8.1 percent a year ago. It was mainly on the back of improvement in credit growth to non-banking finance companies (NBFCs) along with transport operators and tourism, hotels and restaurants.

Loans to NBFCs grew by 10.7 percent in the 12 months ending January 2022 compared with 6.8 percent in the year-ago period. Within NBFCs, loans to housing finance companies grew by 15.7 percent from 14.6 percent in the corresponding period of the previous year.

The personal loan segment continued to expand at a robust rate and grew by 11.6 percent in January 2022 from 8.7 percent a year ago.
Moneycontrol News
first published: Feb 28, 2022 05:48 pm