- Sunday, February 23, 2025
By: Shubham Ghosh
PERSONAL loans have continued to grow at a robust rate and recorded a 13.5 per cent year-on-year rise in March 2021, the Reserve Bank of India said on Tuesday (29). It, however, added that industrial loan growth remained negative during all quarters of the last fiscal.
As per the Quarterly Basic Statistical Return (BSR)-1: Outstanding Credit of Scheduled Commercial Banks (SCBs), March 2021 released by India’s central bank, private sector banks registered a higher loan growth compared to the other bank group.
Their share in total credit went up to 36.5 per cent in March 2021 from 35.4 per cent fa year ago and 24.8 per cent five years ago, it said. Credit to the household sector grew by 10.9 per cent year-on-year while its share in total credit increased to 52.6 per cent in March 2021 from 49.8 per cent the year-ago period.
Growth in credit to the private corporate sector saw a decline for the sixth successive quarter and its share in total credit stood at 28.3 per cent. Working capital loans in the form of cash credit, overdraft and demand loans, which accounted for a third of total credit, shrunk in 2021-21.
Bank branches in urban, semi-urban and rural areas registered a double-digit credit growth (year-on-year) in March 2021 whereas metropolitan branches, which accounted for 63 per cent of bank credit, saw 1.4 per cent growth.
