Growth of credit offtake from banks to major sectors accelerated to 21.9% in May, as against 18.1% in the same month last year, on big surge in lending to non-banking finance companies (NBFCs).
All major sectors, except agriculture, witnessed sharply higher growth of credit offtake in May, year-on-year basis, according to data released today by the Reserve Bank of India (RBI).
The total outstanding credit was Rs 36.83 lakh crore at the end of May, up from Rs 30.21 lakh crore in the same month of the previous fiscal.
Credit offtake of all sectors combined in May, 2009 was Rs 25.58 lakh crore.
"On a year-on-year basis, non-food gross bank credit increased by 21.9% in May 2011 as compared with 18.1% in the corresponding period of last year," the RBI said.
NBFCs, which fall under the services segment, witnessed the biggest growth in credit offtake during the month.
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"Credit growth to NBFCs at 54.4% [year-on-year] in May 2011 was significantly higher than that of 17.5% during the corresponding period of the previous year," the apex bank said.
Total bank credit to the NBFC segment stood at Rs 1.71 lakh crore in May this year as against Rs 1.11 lakh crore in the same month of last year. Credit to the NBFCs was Rs 94,503 crore in May 2009.
On annual basis, total credit to industry -- which includes infrastructure, metals, food processing, rubber, plastic and their products and engineering -- was Rs 16.57 lakh crore in May, up 26.7% from Rs 13.08 lakh crore in the same month last year.
It was Rs 10.40 lakh crore in May, 2009.
All major sectors, except agriculture, recorded accelerated credit growth on a year-on-year basis.
Total credit agriculture and allied areas grew by only 12.8% in May 2011 as against a growth of 21% in the same month of 2010.
It was Rs 4.50 lakh crore in May, 2011 compared to Rs 3.99 lakh crore in May, 2010. At the end of May, 2009, it was at Rs 3.30 lakh crore.
"Credit to the services sector increased by 21.8% [year-on-year] in May 2011 as compared with 15% in the previous year," the RBI said.
The sector saw bank credit growing to Rs 8.81 lakh crore in May this year from Rs 7.24 lakh crore in the corresponding month of last year. In May 2009, the figure was Rs 6.29 lakh crore.