Search
Private Banks continue to outpace public sector banks in credit growth
December 27, 2022
Simultaneously, public sector banks’ (PSBs) share in total credit declined to 56.1 per cent in September 2022 from 57 per cent a year ago and 65.6 per cent five years ago.
Bank credit growth (year-on-year/yoy) accelerated further to 18.0 per cent in September 2022 compared with 14.0 per cent a quarter ago and 5.8 per cent a year ago, per RBI’s Quarterly Basic Statistical Returns (BSR).
Personal loans recorded 21.9 per cent growth (y-o-y) in September 2022; it accounted for one third of the total incremental credit during last one year.
The share of individuals in the total credit reached an all-time high of 44.4 per cent in September 2022; female borrowers accounted for 22.6 per cent of borrowings by individuals, the RBI said.
Credit growth momentum in the industrial sector continued for the fourth successive quarter and recorded double-digit growth in September 2022.
Annual growth in working capital loans by banks, which stood in the contraction zone in March 2021, increased successively thereafter and stood at 16.5 per cent (y-o-y) in September 2022.
Important Links:
- 4-IN-1 Professional Diploma in Banking, Financial Services & Insurance (PDBFSI): https://tscfm.org/courses/4-in-1-professional-diploma-in-banking-financial-services-insurance-pdbfsi/