The share of industrial credit in banks loans after years of sluggish growth declined to a record low of 26 per cent during the first five months of FY22, down from 26.6 per cent during FY21.
As its peak in FY13, industrial credit accounted for nearly 46 per cent of loan disbursements. In comparison personal loans including home loans accounted for 26.7 per cent of bank credit during the first five months of FY22, up from 26.1 per cent at the end of March this year and a low of 18.2 per cent in FY12.
This is the first time since the Reserve Bank of India started providing sectoral deployment of bank credit that personal loans have over taken industrial credit. Outstanding industrial credit was up just 2.3 per cent year on year during the first five months of FY22 to Rs 28.2 trillion at the end of August.