Bank credit to industry surges 8.5% in March: RBI Data

Bank credit to the industry witnessed annual growth of 8.5 per cent in March, according to data released by the Reserve Bank of India (RBI) on Tuesday. However, there was moderation in the personal loans segment during the same period.

Comparatively, the growth in credit to the industry and personal loans segment in March 2023 stood at 5.6 per cent and 21 per cent respectively.

The RBI noted that among major industries, credit growth to sectors such as 'chemicals and chemical products', 'food processing', and 'infrastructure' accelerated in March 2024 compared to the corresponding month of the previous year. Conversely, credit growth to the 'basic metal and metal products' sector moderated.

In contrast, credit growth to agriculture and allied activities remained robust at 20.1 per cent in March 2024, up from 15.4 per cent a year ago.

However, the growth rate of personal loans moderated to 17.7 per cent in March 2024, primarily due to decelerated growth in vehicle loans and other personal loans.

On the services front, credit growth improved to 20.2 per cent from 19.6 per cent in March last year, driven by higher growth in credit to "transport operators" and "commercial real estate".

The data also indicated that credit growth to non-banking financial companies (NBFCs) and trade decelerated in March 2024 compared to the previous year.

Overall, non-food bank credit registered a growth of 16.3 per cent in March 2024, up from 15.4 per cent a year ago. This data is collected from 41 select banks, which account for about 95 per cent of the total non-food credit deployed by all scheduled commercial banks, as per the RBI.

(With PTI inputs)