The Reserve Bank Of India (RBI) released its web publication entitled 'Quarterly Basic Statistical Returns (BSR)-1: Outstanding Credit of Scheduled Commercial Banks (SCBs), December 2019. It captures various characteristics of bank credit such as occupation/activity and organisational sector of the borrower, type of account, and interest rates.
Bank credit growth (Y-o-Y) decelerated for the fourth successive quarter in December 2019 as industrial credit growth (-0.8 per cent) moved to negative terrain for the first time after September 2017; personal loans segment continued to grow at robust pace (17.1 per cent).
Private sector banks led the credit expansion; their share in the total credit has successively expanded to 35.7 per cent in December 2019 from 32.2 per cent a year ago and 30.0 per cent two years ago.
Credit growth (Y-o-Y) by metropolitan branches decelerated to 5.2 per cent in December 2019 from 14.7 per cent a year ago, whereas bank branches in rural, semi-urban and urban areas maintained double-digit credit growth.
The share of private non-financial companies in total credit declined to 25.8 per cent (28.4 per cent a year ago) whereas, for individual borrowers, it increased to 40.3 per cent (37.3 per cent a year ago); the share of female borrowers in total loans also increased marginally.
Branches in northern, western and southern states account for nearly 84 per cent of the total credit.
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Weighted average lending rate (WALR) for outstanding credit declined by 15 basis points (bps) during the quarter ended December 2019: the decline was significant for industry (28 bps) and trade (29 bps) sectors.
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