Loans to medium-sized industries gerew 53.5% this April as compared with 44.8% a year ago
Illustration: Ajay mohanty
Building on the momentum in FY22, credit offtake continued to be robust across all sectors – farming, industry, services and retail in April 2022, the first month of the new financial year (FY23).
Reserve Bank of India data showed credit to industry accelerated to 8.1 per cent year on year in April 2022 (following a contraction of 0.4 per cent in April 2021), higher than 7.1 per cent in March 2022.
Size-wise, credit to medium-sized industries registered a growth of 53.5 per cent in April 2022 as compared with 44.8 per cent last year. Credit growth to micro and small industries rose to 29.0 per cent from 8.7 per cent. The large industries segment also showed growth of 1.6 per cent against a contraction of 3.6 per cent.
The retail segment continued to perform well, registering acceleration in growth to 14.7 per cent in April 2022 (12.1 per cent in April 2021), primarily driven by ‘housing’ and ‘vehicle loans’ segments. The growth was 12.4 per cent in March 2022.
The credit growth to services sector picked up to 11.1 per cent in April 2022 (2.4 per cent a year ago), mainly due to finance companies, trade, tourism, hotels & restaurants and transport operators. The YoY growth in loans to services sector was 8.9 per cent in March 2022.
Credit growth in agriculture and allied activities continued to be robust at 10.6 per cent YoY in April 2022 (10.7 per cent in April 2021). It was 9.9 per cent in March 2022.