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Bank loans to services sector surpass credit to industries
January 03, 2023
Data available till November 18, 2022, show the outstanding loans to the services sector at ₹33.15 lakh crore, up 21.3% in one year. Outstanding loans to the industrial sector rose 13.8% in the same period to ₹32.94 lakh crore.
The expansion in credit to the services sector has largely been driven by loans to non-bank financing companies, said experts.
“We are seeing confidence improve towards the non-bank financing companies; the credit growth you see is a reflection of that,” said Suresh Khatanhar, deputy managing director.
“The NBFCs have a very large credit segment, especially volume wise, and as the economy picks up you will see that segment grow larger and larger.”
Lending to NBFCs now constitutes 10.2% of the outstanding non-food credit. Of the incremental accretion of ₹5.89 lakh crore in the services vertical over the past 12 months, 52% was towards NBFCs and 22% towards other services.
Among non-banks, loans to mainstream financial institutions were up 87.9% on year and to housing finance companies were up 16.1%.
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