Data on sectoral deployment of bank credit for the month of December 2022¹ collected from 40 select scheduled commercial banks, accounting for about 93 per cent of the total non-food credit deployed by all scheduled commercial banks, are set out in Statements I and II.

On a year-on-year (y-o-y) basis, non-food bank credit² registered a growth of 15.3 per cent in December 2022 as compared with 9.4 per cent a year ago.

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

• Credit to agriculture and allied activities rose by 11.5 per cent (y-o-y) in December 2022 as compared with 14.2 per cent a year ago.

• Credit growth to industry improved to 8.7 per cent (y-o-y) in December 2022 from 7.3 per cent in December 2021. Size-wise, credit growth to large industry increased by 7.0 per cent as compared with a growth of 1.1 per cent a year ago. Credit growth to medium industries was 15.4 per cent in December 2022 against 64.6 per cent last year. Credit to micro and small industries registered a growth of 13.7 per cent in December 2022 (24.5 per cent a year ago).

• Within industry, credit growth to ‘all engineering’, ‘basic metal & metal products’, ‘beverage & tobacco’, ‘cement & cement products’, ‘chemicals & chemical products’, ‘construction’, ’glass & glassware’, ‘gems & jewellery’, ‘vehicles, vehicle parts & transport equipment’ and ‘wood & wood products’ accelerated in December 2022 as compared with the corresponding month of the previous year. Credit growth to ‘food processing’, ‘infrastructure’, ‘leather & leather products’, ‘mining & quarrying’, ‘petroleum, coal products & nuclear fuels’, ‘paper & paper products’, ‘rubber, plastic & their products’ and ‘textiles’ decelerated.

• Credit to services sector rose by 19.6 per cent (y-o-y) in December 2022 as compared with 10.2 per cent a year ago, primarily due to the improved credit offtake to ‘NBFCs’.

• Personal loans grew by 20.2 per cent (y-o-y) in December 2022 from 14.9 per cent a year ago, largely driven by ‘housing’ and ‘vehicle loans’.

Rupambara           
Director (Communications)

Press Release: 2022-2023/1639

¹ Data pertain to the last reporting Friday of the month.

² Non-food credit data are based on Section-42 return for the last reporting Friday of the month, which covers all scheduled commercial banks (SCBs).