The non-food bank credit grew by 6.7% in August 2021 as compared to 5.5% last year RBI data showed.
RBI released data pertaining to ‘Sector Development of Bank Credit – August 2021’. Bank loans to agriculture allied activities continued to perform well, registering an accelerated growth of 11.3% in August 2021, as against 4.8% in August 2020, the data showed.
Personal loans registered an accelerated growth of 12.1% as against 8.5% a year ago primarily due to faster credit growth in housing, vehicle loans and loans against gold jewelry.
With the faster credit growth, private sector banks have increased their share in total credit to 36.6% from 25.7% five years ago, at the cost of public sector banks whose share declined from 69.0% to 58.1% over the same period.