Credit to agriculture and allied activities continued to be robust at 10.4 per cent in November 2021 as compared to 7.0 per cent in November 2020. Retail loans rose 11.6 per cent in November 2021 vis-a-vis 9.2 per cent in November 2020 driven primarily by ‘consumer durables’ and ‘vehicle loans, the RBI said.
Credit to medium industries registered a robust growth of 48.7 per cent in November 2021 as compared to 25.7 per cent last year. Credit to micro and small industries accelerated to 12.7 per cent in November 2021 from 0.6 per cent a year ago. But credit to large industries in November 2021 broadly remained at the same level as that of last year.
The sharp rise in MSME loans was largely due to the government efforts to revive the economy which went into slow pace due to the pandemic induced lockdown. Under the Emergency Credit Line Guarantee Scheme (ECLGS), MSMEs get up to 20% of the borrower’s total outstanding credit and up to Rs 25 crore is fully guaranteed by the government. This is a part of the Rs 20 lakh crore package to help the industries hit by the COVID induced lockdown.
Credit growth to services sector slowed down to 3.6 per cent in November 2021 against 8.2 per cent a year ago. The Reserve Bank has collected the data on sectoral deployment of bank credit from select 33 commercial banks, accounting for about 90 per cent of the total non-food credit deployed, RBI said.