Non-food bank credit registers robust 16.1% y-o-y growth in April 2023

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Non-food bank credit registered a robust growth of 16.1 percent in April 2023 compared to 11.4 percent a year earlier on the back of strong growth in credit to the services sector, personal sector, agriculture and allied activities, according to data from the Reserve Bank of India. .

Credit growth for the services sector accelerated to 21.6 percent (y-o-y) in April 2023 from 11.2 percent a year earlier, mainly due to improving credits of ‘Non-Banking Financial Corporations (NBFCs) and ‘Trading’, according to data on Sectoral distribution of bank credit for the month of April 2023.

Personal loan growth registered a growth of 19.4 percent (YoY) in April 2023 compared to 14.4 percent a year earlier, mainly driven by “Housing Loans” and “Auto Loans”.

Credit to agriculture and allied activities improved to 16.7 percent (y-o-y) in April 2023 from 10.6 percent a year earlier.

Credit to the industry recorded a growth of 7 percent (YoY) in April 2023 compared to 8 percent in April 2022.

In terms of volume, credit to large industries increased by 5.3 percent compared to 1.3 percent a year earlier, the Reserve Bank of India said in a statement.

Credit growth for medium industries slowed to 19.1 percent from 53.7 percent last year.

Credit growth for small and micro industries slowed to 9.7 percent in April 2023 (29.8 percent a year earlier).