Increase in personal loan subscriptions over the 2021 financial year, industrial loan contracts
The bank lending scenario in the country saw a stark contrast in terms of sectoral credit underwriting in FY21, with personal loans increasing 13.5%, while industrial lending growth remained negative throughout. throughout the last exercise.
Data released by the Reserve Bank of India (RBI) also showed that credit to the household sector grew 10.9% year-on-year.
The share of credit to the household sector in total credit rose to 52.6% in March 2021, from 49.8% a year ago, indicated “Quarterly BSR-1: outstanding commercial bank loans scheduled for March 2021 â.
âCredit growth to the private business sector, however, declined for the sixth consecutive quarter and its share of total credit stood at 28.3 percent,â he said.
Working capital loans in the form of cash loans, overdrafts and demand loans, which represented one third of the total loan, contracted during the period 2020-2021.
Private sector banks recorded higher loan growth than other banking groups, their share in total credit increased to 36.5% in March 2021, from 35.4% a year ago and 24.8% % five years ago.
The weighted average borrowing rate (WALR) on outstanding loans moderated by 91 basis points during the period 2020-21, including a decrease of 21 basis points during the fourth quarter of 2020-21.
In addition, the data also showed that bank branches in urban, semi-urban and rural areas recorded double-digit (year-over-year) credit growth in March 2021 while metro branches, which accounted for 63% of the total. bank credit, recorded a growth of 1.4% in credit.
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