Credit to MSMEs, agriculture increases; personal loans grow 12.6%

Credit to mid-sized industrial units saw robust growth of 43.8% in April, down from a contraction of 6.4% a year ago, according to data from the Reserve Bank of India.

At the same time, credit growth to small and micro-industries accelerated 3.8% in April, down from a contraction of 2.2% a year ago. However, credit to major industries contracted 1.9 percent, up from 2.7 percent growth a year ago. Year-over-year (year-over-year) growth in non-food bank credit was 5.7% in April, up from 6.7% last year.

Bankers said activity in the first month of the new fiscal year was still subdued and local lockdowns imposed to contain the spread of the second wave of the Covid-19 pandemic had impacted demand.

Growth in credit to agriculture and related activities accelerated by 11.3%, compared to 4.7% the previous year.

In industry, loans to segments such as food processing, textiles, gemstones and jewelry showed a higher rate of growth in April than in the corresponding month of last year.

However, the pace of credit growth in mining, beverages and tobacco, petroleum coal products, vehicles and vehicle parts, and transport equipment slowed or contracted.

Credit growth to the service sector slowed to 1.2% in April 2021, from 10.6% a year ago, mainly due to the slowdown in credit growth to NBFCs and the marginal contraction in credit to NBFCs. carriers.

Personal loans grew 12.6% in April 2021, up from 12.3% a year ago. This was mainly due to the accelerated growth in auto loans, loans against gold jewelry and credit card outstanding, RBI added.

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