During the first quarter of the current financial year, Bank credit registered 5.8 percent growth compared to last year. Personal loans accelerated to 14.8 percent on a year-on-year basis while bank credit to the industrial sector declined. Credit to individuals in the household sectors continued to rise and their share in total loans increased to 43.3 percent from 34.2 percent five years ago. Female borrowers had nearly 22 per cent share in the amount of credit to individuals.
Bank branches in urban, semi-urban and rural centres maintained double digit credit growth on a year on year basis in June 2021 but credit extended by metropolitan branches just recorded growth of 2.7 per cent. During the last five years public sector banks share in total credit declined to 58 percent from 69 percent while private banks share increased to 36.6 per cent as compared to 25.7 percent 5 years ago.