Bank credit growth remains subdued in January 2021

Gross bank credit increased by 6 per cent in Jan 2021 from a year-ago level. Outstanding credit as of January 2021 was Rs 95 lakh crore.

Food credit growth in January 2021 grew by 10.4 per cent YoY as compared with a growth of 11.3 per cent in January 2020. Food credit consists 10 per cent of total bank credit.

Non-food credit growth in January 2021 slowed down to 5.7 per cent as compared with a growth of 8.5 per cent in January 2020 and 5.9 per cent in December 2020.

Agriculture & allied segments have driven the overall credit growth during the month of January 2021 growing by 9.9 per cent, highest in the last four years.

Industry segment continues to report a negative incremental growth owing to risk aversion from both lenders and borrowers.

The incremental growth in the services segment turned positive in January 2021 largely led by trade, transport operators and tourism, hotels & resorts.