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Bank credit to retail, wholesale trade grows by 21%
November 07, 2022
Among wholesale and retail trade, the former saw ₹3.77 lakh crore credit deployed, higher than ₹3.68 lakh crore deployed to the retail trade in September.
While the wholesale trade credit (other than credit to food procurement) registered 23 per cent growth during September vis-a-vis 8.2 per cent growth during September 2021, the retail trade credit grew by 19.6 per cent in comparison to 2.7 per cent during the year-ago period, indicating uptake in credit post their inclusion in the MSME category in July last year.
The YoY growth in August stood at 16.9 per cent from 7 per cent during the year-ago period with ₹7.31 lakh crore in aggregate credit deployed to retail and wholesale trade during the month vis-a-vis ₹6.26 lakh crore deployed in August last year.
According to a CareEdge Ratings report in October, credit offtake increased 17.9 per cent YoY, reaching a decadal high mark, for the fortnight that ended October 7, 2022, on the back of retail credit, higher working capital demand amidst high inflation, and lower funds raised in the capital market and is expected to remain elevated in the short term due to the ongoing festival season.
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