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The bank credit scenario in the country witnessed a sharp contrast in terms of sectoral credit offtake in FY21 with personal loans growing by a robust 13.5 per cent, while industrial loan growth remained negative throughout the last fiscal.

Data released by the Reserve Bank of India (RBI) also showed that credit to the household sector rose by 10.9 per cent on a year-on-year basis (YoY).

The share of credit to household sector in total credit increased to 52.6 per cent in March 2021 from 49.8 per cent a year ago showed 'Quarterly BSR-1: Outstanding Credit of Scheduled Commercial Banks for March 2021'.

"Growth in credit to the private corporate sector, however, declined for the sixth successive quarter and its share in total credit stood at 28.3 per cent," it said.

Working capital loans in the form of cash credit, overdraft and demand loans, which accounted for a third of total credit, contracted during 2020-21.

Private sector banks recorded higher loan growth when compared to other bank groups, their share in total credit increased to 36.5 per cent in March 2021 from 35.4 per cent a year ago and 24.8 per cent five years ago.

Weighted average lending rate (WALR) on outstanding credit has moderated by 91 basis points during 2020-21, including a decline of 21 basis points during Q4 2020-21.

Further, the data also showed that bank branches in urban, semi-urban and rural areas recorded double-digit credit growth (YoY) in March 2021 whereas metropolitan branches, which accounted for 63 per cent of bank credit, recorded 1.4 per cent growth in credit.