As per the Reserve Bank of India’s (RBI) data on ‘Sectoral Deployment of Bank Credit – December 2021’ the bank’s non-food credit registered a growth of 9.3 percent (on a year-on-year (y-o-y) basis) in December 2021 as compared to 6.6 percent in December 2020.
- The improvement in credit growth is mainly due to the credit growth in all 4 segments such as agriculture and allied activities, industry, services and personal loans.
Highlights of the sectoral deployment of bank credit:
i.Credit to Agriculture and Allied activities continued to perform well, registering a robust growth of 14.5 percent in December 2021 as compared to 7.7 per cent in December 2020.
ii.Sectoral Deployment of Bank Credit – December 2021:
|S.no||Sector||December 2021||December 2020|
|1.||Gross Bank Credit (II + III)||9.2%||6.6%|
|3.||III. Non-food Credit||9.3%||6.6%|
|4.||Agriculture and Allied Activities||14.5%||7.7%|
|a.Micro and Small||20.5%||1.3%|
|a. Non-Banking Financial Companies (NBFCs)||13.4%||3.7%|
i.Within the industry, credit growth to all engineering, chemicals & chemical products, infrastructure, mining & quarrying, petroleum, coal product & nuclear fuels, textiles and wood & wood products, etc, accelerated in December 2021 as compared to December 2020.
ii.Credit growth to basic metal & metal products, cement & cement products, construction, food processing, glass & glassware, paper & paper products, etc, have contracted in December 2021 as compared to December 2020.
iii.Housing remained the prime driver of overall growth in the personal loans segment.
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As per the Reserve Bank of India’s (RBI) annual report namely ‘State Finances: A Study of Budgets of 2021-22’ combined debt-to-GDP (Gross Domestic Product) ratio of states is expected to remain at 31 percent by end-March 2022, which is worryingly higher than the target of 20 percent to be achieved by 2022-23 (FY23).
About Reserve Bank of India (RBI):
Establishment – 1st April 1935
Headquarters – Mumbai, Maharashtra
Governor – Shaktikanta Das
Deputy Governors – Mahesh Kumar Jain, Michael Debabrata Patra, M. Rajeshwar Rao, T. Rabi Sankar