Credit drawdown increases by 8% in February

Helped by a recovery in credit growth in the agriculture and manufacturing segments, non-food bank credit grew by 8.0% in February 2022, compared to 6.6% a year ago. year.

According to the latest RBI data, credit to agriculture and related activities continued to perform well, recording accelerated growth of 10.4% in February 2022 from 8.6% in February 2021.

Industry credit growth accelerated to 6.5% in February 2022 from 1.0% in February 2021, the RBI said. From a size perspective, credit to medium industries recorded strong growth of 71.4% in February 2022 compared to 30.6% last year.

The central bank said credit growth to micro and small industries accelerated to 19.9% ​​from 3.1% and credit to large industries saw marginal growth of 0.5% from a contraction of 0.5%. 0.6% over the same period.

He said credit growth to the services sector was 5.6% in February 2022, down from 8.8% a year ago. In services, NBFC credit growth improved significantly to 14.6% in February 2022 from 7% a year ago, the RBI said.

The personal loan segment continued to grow at a healthy pace and grew 12.3% in February 2022 from 9.6% in February 2021, driven mainly by home loans and car loans, it said. he indicates.

Within the industry, growth in credit to all of engineering, chemicals and chemicals, food processing, infrastructure, leather and leather products, mining and quarrying, petroleum, coal and nuclear fuel products and rubber, plastics and their products accelerated in February 2022 compared to the corresponding month of the previous year, the RBI said.

However, credit growth to base metals and metal products, beverages and tobacco, cement and cement products, construction, glass and glassware, gems and jewelry, paper and paper products, textiles, vehicles, vehicle parts and hardware transportation and wood and wood products slowed/contracted.