Credit disbursement to priority sectors jumps 86% in 2024: Ministry of Finance
Ministry of Finance in its latest report has showed that the overall credit disbursement to priority sectors including Agriculture, MSME and Social Infrastructure by banks surged 85.66% to Rs 42,73,161 crore in 2024 as compared to Rs 23,01,567 crore in 2019.
According to the data report, the total disbursement to the agriculture sector increased 106.10% from Rs 8,86,791 crore to Rs 18,27,666 crore in 2024. This also includes credit disbursement towards agriculture infrastructure by banks. The overall credit disbursement to the MSME sector has also increased 97.78% from Rs 10,99,055 crore in 2019 to Rs 21,73,679 crore in 2024.
The report further noted that to enhance quality of banking services for customers, banks have been collaborating with FinTechs for provisioning of various services to the customers, while various measures have been taken by the government and RBI to improve financial soundness of banks and to address the issues related to credit discipline, responsible lending and improved governance, adoption of technology, recovery and reduction of NPAs.
