Personal Loans Growth Moderated To 18.4%

Sectoral Deployment of Bank Credit – January 2024

FinTech BizNews Service   

Mumbai, March 2, 2024: Data on sectoral deployment of bank credit for the month of January 20241 have been collected from 41 select scheduled commercial banks, accounting for about 95 per cent of the total non-food credit deployed by all scheduled commercial banks.

On a year-on-year (y-o-y) basis, non-food bank credit2 registered a growth of 16.2 per cent in January 20243 as compared with 16.7 per cent a year ago.

Highlights of the sectoral deployment of bank credit3 are given below:

Credit growth to agriculture and allied activities improved to 20.1 per cent (y-o-y) in January 2024 from 14.4 per cent a year ago.

Credit to industry grew by 7.8 per cent (y-o-y) in January 2024 as compared with 8.7 per cent in January 2023. Among major industries, growth in credit (y-o-y) to ‘food processing’ and ‘textiles’ accelerated in January 2024 as compared with the corresponding month of the previous year, while that to ‘basic metal & metal products’ and ‘chemicals & chemical products’ decelerated.

Credit to services sector grew by 20.7 per cent (y-o-y) in January 2024 (21.4 per cent a year ago). Among major contributors, growth in credit (y-o-y) to ‘trade’ improved while that to ‘non-banking financial companies (NBFCs)’ decelerated in January 2024 compared to January 2023.

Personal loans growth moderated to 18.4 per cent (y-o-y) in January 2024 (20.7 per cent a year ago) due to decelerated growth in vehicle and other personal loans.


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