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Synopsis

• Gross bank credit offtake witnessed a continued rise of 15.4% year-on-year (y-o-y) in May 2023. The growth was driven by services and personal loans as Non-Banking Financial Companies (NBFCs), vehicle loans, unsecured personal loans1 and retail trade reported robust growth.

* Services segment jumped 21.4% y-o-y in May 2023 as compared with 12.7% a year-ago due to growth in NBFCs, retail trade and other services.

* Personal loans rose by 19.2% y-o-y in May 2023 from 16.3% a year ago, driven by growth in unsecured, housing and vehicle loans loan.

* Industry moderated at 6.0% y-o-y in May 2023 from 8.8% over the year-ago period due to moderate growth in MSME and infrastructure. Infrastructure rose marginally by 1.7% y-o-y against 9.8% in May 2023 as credit for power witnessed a slower rate, road moderated, and telecommunication reduced.

* Agriculture and allied activities segment also rose by 16.0% y-o-y in May 2023.

Summary of Sectoral Performance

Figure 1: Sectoral Distribution of Credit: May 2023 (Rs. Lakh Crore)

Figure 2: Monthly Trend in Gross Bank Credit Outstanding and Growth (%)

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