Gold loans spur personal loans, bank credit slows

Growth in personal loans quickened to 11.9% in June, from 10.4% a year earlier, primarily due to accelerated growth in ‘loans against gold jewellery’ and ‘vehicle loans’, the Reserve Bank of India (RBI) said in its report on Sectoral Deployment of Bank Credit - June 2021.

The data on bank credit was collected from 33 scheduled commercial banks, accounting for about 90% of the total non-food credit deployed by banks for the month of June 2021.

On a year-on-year basis, non-food bank credit grew 5.9% last month, slowing from June 2020’s 6.0%, the central bank said.

Credit to industry contracted by 0.3% in June 2021 from 2.2% growth in June 2020. Size-wise, credit to medium industries registered robust growth of 54.6% in June after having posted a contraction of 9.0% a year earlier.

Credit to micro and small industries rebounded to growth of 6.4%, after shrinking 2.9% in June 2020, while credit to large industries contracted by 3.4% after growing 3.6% a year earlier, the central bank said.

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Printable version | Sep 22, 2021 2:28:40 PM |

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