On an annual basis (year-on-year), non-food bank credit1 grew by 9.3% in December 2021, compared to 6.6% a year ago, according to the latest data. While all major sectors continued to post growth above year-ago levels, loans to mid-sized businesses grew the fastest.
Credit to medium industries grew by 86.5% in December 2021 from 17.1% last year, according to the latest RBI data. Credit growth to micro and small industries also increased to 20.5% in December 2021 from 1.3% a year ago. “(This reflects) the effectiveness of the various measures taken by the government and the RBI to stimulate the flow of credit to the micro, small and medium enterprise (MSME) sector,” the latest economic survey said.
Loans to large industries recorded growth of 1.3% in December 2021 compared to a contraction of 0.5% a year ago. Overall industrial credit growth improved significantly, from 0.4% in December 2020 to 7.6% in December 2021.
Credit to agriculture and related activities increased by 14.5% in December 2021 compared to 7.7% in December 2020. Loans to individuals increased by 14.3% in December 2021 compared to 8.8% a year ago. one year old. Housing remained the main driver of overall growth in the retail segment, RBI said.
Credit growth to the services sector accelerated to 10.8% in December 2021, from 8.0% a year ago, mainly due to a significant improvement in credit growth to NBFCs .