The bank credit to non-banking finance companies and micro, small and medium enterprises increased in August, data released by RBI on Tuesday showed.
Loans to micro and small businesses increased by 1.8% on month and 21% on a year-on-year basis to `8.99 lakh crore. Credit to large businesses increased 1.8% on year to `27.4 lakh crore. Loans to medium businesses saw a growth of over 13% to `3.7 lakh crore.
What did the release say?
“Credit to micro and small, and medium industries continued to expand at a robust pace. Among major industries, outstanding credit to ‘all engineering’, ‘vehicles, vehicle parts and transport equipment’ and ‘rubber, plastic and their products’ recorded a buoyant Y-o-Y growth,” the release said.
What was the other highlight?
The other highlight was an uptick in bank credit to the non-bank financial companies. Loans to non-bank finance companies rose 3.4% on year to `15.74 lakh crore in August.