Personal loans accelerate 11.9% growth in June 2021: RBI


Growth in non-food bank credit stood at 5.9% in June, down from 6% a year ago, according to RBI data released on Friday.

Credit to agriculture and related activities continued to perform well, registering an accelerated growth of 11.4% in the base month, compared to 2.4% in the same month of the previous year, according to data from the RBI on the sectoral deployment of bank credit in June 2021.

Advances to industry contracted 0.3 percent in June after increasing 2.2 percent in the same period a year ago.

In terms of size, credit to medium-sized industries recorded robust growth of 54.6% in June. There was a 9 percent contraction over the period last year.

Credit growth to micro and small industries accelerated to 6.4% in June, down from 2.9% a year ago. Credit to large industries contracted by 3.4% in June 2021. During the period of the previous year, there was a growth of 3.6%.

The growth of loans to the service sector slowed to 2.9% in the base month from 10.7% in June 2020, mainly due to the contraction / deceleration in the growth of credit to commercial real estate, NBFC and tourism, hotels and restaurants.

“However, the trade credit segment continued to perform well, registering accelerated growth of 11.1% in June 2021 from 8.1% a year ago,” the data showed.

Personal loans saw an accelerated growth of 11.9% in June 2021 from 10.4% a year ago, mainly due to the accelerated growth in loans against gold jewelry and auto loans, according to data from the central bank.

(Only the title and image of this report may have been reworked by Business Standard staff; the rest of the content is automatically generated from a syndicated feed.)

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