The share of industrial credit in total bank credit declined to 31.5 per cent in March 2020 as against 33.1 per cent a year ago, Reserve Bank data showed.
Bank credit growth (year-on-year) continued to decelerate across all population groups and stood at 6.3 per cent in March 2020. However, bank branches in rural areas maintained a double-digit growth.
“The share of industrial credit in total bank credit declined to 31.5 per cent in March 2020 as against 33.1 per cent a year ago, as it recorded a meagre 0.9 per cent growth (year-on-year) in March 2020,” the RBI’s data on outstanding credit of scheduled commercial banks for March 2020 showed.
The data captures various characteristics of bank credit such as population group (rural/semi-urban/ urban/ metropolitan); occupation/activity and organisational sector of the borrower; type of account; and interest rates.
The data covered 1,24,984 bank branches (excluding regional rural banks).
It showed overall credit expansion has been supported by a robust growth in personal loans. The share of individuals in total bank credit has increased to 40.1 per cent in March 2020 (37.4 per cent a year ago and 30.8 per cent five years ago), whereas that of the private corporate sector has declined.
Within individuals, the share of female borrowers has been consistently on the rise, it said.
All bank groups recorded moderation in credit growth during 2019-20, though private sector banks continued to lead the growth.
The overall weighted average lending rate (WALR) on outstanding credit declined by 17 basis points during the quarter ended March 2020, the data showed.