Industries that saw an incremental bank credit growth during FY2020

The incremental bank credit expanded by double digit growth rate in petroleum and coal. Credit growth in petroleum, coal products and Nuclear industry has increased by 20 per cent in FY20 from last year.

Automobiles industries and household products witnessed a credit growth of almost 19 per cent Y-O-Y in FY20. Fertilisers industry saw bank credit growth by 20 per cent in the fiscal 2020 from a mild growth of 6 per cent last fiscal.

Beverage and Tobacco industries took the credit off take by more than 12 percent in FY2020. Credit growth was negative by 6 per cent in last fiscal.

Bank credit growth increased to 10.1 per cent in fiscal year 2020 on Y-O-Y basis as compared to 8.1 per cent in the last fiscal year of 2019. The slowdown in bank credit is due to slowdown in usage of rubber, plastic products and manufacturing.

Bank credit off take continued to be muted during April 2020 despite the prevalence of surplus liquidity in the banking system. The bank credit growth of chemical industry has increased by 17.5 per cent year on year.

Of the 19 key industries, 13 witnessed a growth in incremental bank credit off take during FY20. The incremental bank credit expanded by double digit growth rate in petroleum and coal, beverages and tobacco, rubber and plastic, whereas it declined in gems and jewellery, glass and glassware, basic metals infrastructure among others during the year.

Credit growth to industry, which refers to loans to corporate entities, fell to just 1.4 per cent at the end of March, as compared to 6.9 per cent a year ago. The sectors that saw some pick-up in loan demand which include Mining and quarrying. These picked up by 5.2 per cent from last year. It increased by only 1.1 per cent in FY19.