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Onset of festive season pushes credit growth across sectors in September

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Reflecting the surge in demand during the and economic upturn, credit off-take across all sectors — farming, industry, services and retail — remained robust in September 2022 compared to the same period a year ago.


The pace of — demand from households and individuals — was 19.6 per cent year on year (YoY) this September. The figure was 13.2 per cent a year ago. The rise in credit was largely driven by housing and segments.


(RBI) data showed that credit to industry — small, medium and large — registered 12.6 per cent growth against a mere 1.7 per cent growth in September 2021. The was low in FY22 due to the impact of the second wave of the Covid-19 pandemic.


Size-wise, credit to large industry accelerated to 7.9 per cent against a contraction of 2.1 per cent a year ago. Medium industries recorded of 36.2 per cent in September 2022 as compared with 37.1 per cent last year. The credit to micro and small industries rose by 27.1 per cent (13.1 per cent a year ago).


to the services sector was accelerated to 20.0 per cent in September 2022 from just 1.2 per cent a year ago. It was mainly due to improved credit off-take to and trade sectors, said.


Bankers said along with higher volumes in economic activity, the rise in input costs due to inflation also pushed business establishments (industry as well as services) to draw on lines.


Credit to and allied activities has remained robust at 13.4 per cent YoY in September 2022 compared to 10.6 per cent a year ago.



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