Data on sectoral deployment of bank credit collected from select 33 scheduled commercial banks, accounting for about 90 per cent of the total non-food credit deployed by all scheduled commercial banks, for the month of January 2021 are set out in Statements I and II.

Highlights of the sectoral deployment of bank credit are given below:

• On a year-on-year (y-o-y) basis, non-food bank credit growth stood at 5.7 per cent in January 2021 as compared to 8.5 per cent in January 2020.

• Continuing its uptrend, credit growth to agriculture and allied activities accelerated to 9.9 per cent in January 2021 from 6.5 per cent in January 2020.

• Credit to industry contracted by 1.3 per cent in January 2021 as compared to 2.5 per cent growth in January 2020 mainly due to contraction in credit to large industries by 2.5 per cent (2.8 per cent growth in January 2020). Credit to medium industries registered a robust growth of 19.1 per cent in January 2021 as compared to 2.8 per cent a year ago and credit to micro & small industries registered a growth of 0.9 per cent in January 2021 as compared to 0.5 per cent a year ago.

• Within industry, credit to ‘mining & quarrying’, ‘food processing’, ‘textile’, ‘gems & jewellery’, ‘petroleum, coal products & nuclear fuels’, ‘paper & paper products’, ‘leather & leather products’, and ‘vehicles, vehicle parts & transport equipment’ registered accelerated growth in January 2021 as compared to the growth in the corresponding month of the previous year. However, credit growth to ‘rubber plastic & their products’, ‘beverages & tobacco’, ‘chemicals & chemical products’, ‘basic metal & metal products’, ‘construction’ and ‘infrastructure’ decelerated/contracted.

• Credit growth to the services sector decelerated moderately to 8.4 per cent in January 2021 from 8.9 per cent in January 2020. However, credit to ‘transport operators’ and ‘trade’ continued to perform well during the month, registering accelerated growth.

• Personal loans growth decelerated of 9.1 per cent in January 2021 from 16.9 per cent in January 2020.

Ajit Prasad
Director   

Press Release: 2020-2021/1168

¹ With effect from January 2021, sectoral bank credit data are based on revised format due to which values and growth rates of some of the existing components published earlier have undergone some changes.