Gross bank credit rose 13.2 per cent in June compared to 4.8 percent a year ago. Overall credit to industry rose 9.5 per cent against a contraction of 0.6 per cent in June 2021.
” The sector-wise credit data for the month of June 2022 indicate that there is a substantial improvement in incremental credit to each and every sector” said S K Ghosh, group chief economic advisor,
. Credit growth to micro and small industries accelerated to 29.6 per cent in June 2022 from 11.6 per cent a year ago, while credit to medium industries grew by 47.6 per cent compared to 59.0 per cent last year. Credit to large industries recorded a growth of 3.3 per cent against a contraction of 4.8 per cent during the same period.
Retail loans segment maintained its uptrend and grew by 18.1 per cent in June 2022 vis-a-vis 12.2 per cent in June 2021, primarily driven by ‘housing’ and ‘vehicle loans’ segments.
“The outlook on banking sector depends upon the evolving geopolitical situation and its impact on global commodity prices and logistics” Ghosh said.” In FY’23, we expect both deposits and credit will continue to grow in double digits, despite the interest rate reversal”.
Credit growth to services sector improved to 12.8 per cent in June 2022 as compared with 4.0 per cent a year ago, mainly due to improved offtake to ‘NBFCs’- 21 per cent compared to contraction of 1percent, ‘professional services’-10 percent compared to a contraction of 3.6 percent and ‘transport operators’-9 per cent compared to 3.9 per cent.
Credit to agriculture and allied activities grew by 13.0 per cent in June 2022 as compared with 10.6 per cent a year ago.