It, however, improved for the bank branches in rural, semi-urban and urban areas, according to the data released by the Reserve Bank of India (RBI).
RBI on Friday released Quarterly Basic Statistical Returns (BSR)-1: Outstanding Credit of Scheduled Commercial Banks (SCBs), September 2020.
It captures various characteristics of bank credit such as occupation/activity and organisational sector of the borrower, type of account, and interest rates.
Data covering 1,26,580 branches of 89 scheduled commercial banks (excluding Regional Rural Banks) are presented for bank groups, population groups and states.
Personal loans, which accounted for one-fourth of bank credit, continued to maintain double-digit growth during the September quarter.
Industrial credit, on the other hand, contracted by 1.7 per cent (year-on-year) and its share in total credit stood at nearly 30 per cent in September quarter 2020, it said.
Bank loans to private non-financial companies continue to contract year-on-year for the fourth successive quarter and stood at (-) 6.7 per cent in September quarter reflecting tepid demand conditions, the data showed.
Weighted average lending rate (WALR) for outstanding credit declined by 21 basis points during July-September 2020, RBI said.