Non-food bank credit rose 17% in September | Techy Kings

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While small-sized loans account for a larger share of the bank’s credit portfolio, larger businesses increased their funding reliance on banks in September, with advances recording growth of 7%.

In September last year, such advances had contracted 2.9%, central bank data on the sector’s use of bank credit showed.

On a year-on-year (yoy) basis, non-food bank credit increased 17% in September 2022, compared to 6.8% a year ago.

In terms of size, loans to large businesses increased to 7.9% compared to a contraction of 2.1% a year ago. Medium industries recorded credit growth of 36.2% in September 2022 compared to 37.1% last year, while credit to micro and small industries increased by 27.1% (13.1% a year ago).

Overall credit to industry grew 12.6% in September 2022 compared to 1.7% in September 2021, RBI data showed. Loans to industry accounted for 26% of gross bank credit at the end of September.

Retail loans rose 19.6% in September 2022 (13.2% a year ago), largely driven by the housing and vehicle loan segments, the central bank said.

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