Data on sectoral deployment of bank credit for the month of June 2023¹ collected from 40 select scheduled commercial banks, accounting for about 93 per cent of the total non-food credit deployed by all scheduled commercial banks, are set out in Statements I and II.

On a year-on-year (y-o-y) basis, non-food bank credit² registered a growth of 16.3 per cent in June 2023 as compared with 15.0 per cent a year ago.

Highlights of the sectoral deployment of bank credit are given below:

• Credit to agriculture and allied activities improved to 19.7 per cent (y-o-y) in June 2023 from 12.9 per cent a year ago.

• Credit to industry registered a growth of 8.1 per cent (y-o-y) in June 2023 as compared with 9.5 per cent in June 2022. Size-wise, credit to large industry rose by 6.4 per cent (3.2 per cent a year ago). Credit to medium industries grew by 13.2 per cent (47.8 per cent last year) and micro and small industries by 13.0 per cent (29.2 per cent a year ago).

• Among major industries, credit growth (y-o-y) to ‘basic metal & metal products’ and ‘textiles’ accelerated in June 2023 as compared with the corresponding month of the previous year. Credit growth to ‘chemicals & chemical products’, ‘food processing’ and ‘infrastructure’ decelerated.

• Credit growth to services sector accelerated to 26.7 per cent (y-o-y) in June 2023 from 12.8 per cent a year ago, primarily due to the improved credit offtake to ‘non-banking financial companies (NBFCs)’ and ‘trade’.

• Personal loans registered a growth of 20.9 per cent (y-o-y) in June 2023 vis-à-vis 18.1 per cent a year ago, mainly supported by ‘housing’ and ‘vehicle’ loans.

Ajit Prasad           
Director (Communications)

Press Release: 2023-2024/676

¹ Data pertain to the last reporting Friday of the month.

² Non-food credit data are based on Section-42 return for the last reporting Friday of the month, which covers all scheduled commercial banks (SCBs).