Sectoral Deployment of Bank Credit – May 2021

Data on sectoral deployment of bank credit collected from select 33 scheduled commercial banks, accounting for about 90 per cent of the total non-food credit deployed by all scheduled commercial banks for the month of May 2021, are set out in Statements I and II.

On a year-on-year (y-o-y) basis, non-food bank credit1 growth stood at 5.9 per cent in May 2021 as compared to 6.1 per cent in May 2020.

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

  • Credit to agriculture and allied activities continued to perform well, registering an accelerated growth of 10.3 per cent in May 2021 as compared to 5.2 per cent in May 2020.

  • Credit growth to industry decelerated to 0.8 per cent in May 2021 from 1.7 per cent in May 2020. Size-wise, credit to medium industries registered a robust growth of 45.8 per cent in May 2021 as compared to a contraction of 5.3 per cent a year ago. Credit growth to micro and small industries accelerated to 5.0 per cent in May 2021 as compared to a contraction of 3.4 per cent a year ago, while credit to large industries contracted by 1.7 per cent in May 2021 as compared to a growth of 2.8 per cent a year ago.

  • Within industry, credit to ‘mining & quarrying’, ‘food processing’, ‘textiles’, ‘gems & jewellery’, ‘wood & wood products’, ‘paper & paper products’, ‘glass & glassware’, ‘infrastructure’, ‘leather & leather products’ and ‘rubber, plastic & their product’ registered an accelerated growth in May 2021 as compared to the corresponding month of the previous year. However, credit growth to ‘beverages & tobacco’, ‘petroleum coal products & nuclear fuels’, ‘vehicles, vehicle parts & transport equipment’, ‘basic metal & metal products’, ‘cement & cement products’, ‘all engineering’, ‘chemicals & chemical products’ and ‘construction’ decelerated/contracted.

  • Credit growth to the services sector decelerated to 1.9 per cent in May 2021 from 10.3 per cent in May 2020, mainly due to deceleration in credit growth to NBFCs, transport operators and commercial real estate. However, credit to trade segment continued to perform well, registering accelerated growth of 12.4 per cent in May 2021 as compared to 7.7 per cent a year ago.

  • Personal loans registered an accelerated growth of 12.4 per cent in May 2021 as compared to 10.6 per cent a year ago, primarily due to accelerated growth in vehicle loans and credit card outstanding.

(Yogesh Dayal)     
Chief General Manager

Press Release: 2021-2022/458


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