15.3% increase in bank credit in April: RBI: According to the Reserve Bank of India (RBI), the banking industry reported a stronger credit growth in the first month of the fiscal year 2024, driven by a rise in advances to the agricultural sector.
In April, non-food bank credit expanded 15.3% year over year (y-o-y), down from 16.2% growth in the same month last year. Bank non-food credit was worth Rs 159.55 lakh crore in April 2023 as opposed to Rs 138.38 lakh crore in the same month the previous year.
According to the Reserve Bank of India’s Sectoral Deployment of Bank Credit for April 2024, loans to agriculture and related sectors increased to 19.7% in April 2024 from 16.8% in the previous year.
Due mostly to slower growth in auto loans, the personal loans segment’s growth slowed to 17.4% from a 19% increase the previous year. Despite an acceleration in the increase of home credit (17.7% as opposed to 13.9%), there was a moderation.
In April of this year, bank lending to the industry increased by 6.9% as opposed to 7.2% during the same month last year.
In April 2024, credit to the services sector increased by 19.2%, as opposed to 21.3% in the same month the previous year. Better credit growth to professional services and commercial real estate drove the segment’s expansion.
According to RBI data, credit growth to non-banking financial businesses (NBFCs) and trade, however, slowed in April 2024 by 14.6% as opposed to 29.2% in April 2023.
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