Bank credit to retail, wholesale trade grows 21% in September: RBI data | The Financial Express

Bank credit to retail, wholesale trade grows 21% in September: RBI data

Credit and finance for MSMEs: While the wholesale trade credit (other than credit to food procurement) registered 23 per cent growth during September vis-a-vis 8.2 per cent growth during September 2021, the retail trade credit grew by 19.6 per cent in comparison to 2.7 per cent during the year-ago period.

Bank credit to retail, wholesale trade grows 21% in September: RBI data
Among wholesale and retail trade, the former saw Rs 3.77 lakh crore credit deployed, higher than Rs 3.68 lakh crore deployed to the retail trade in September.

Credit and finance for MSMEs: Bank credit to retail and wholesale trade in September recorded a 21 per cent growth to Rs 7.45 lakh crore from Rs 6.96 lakh crore during September 2021, showed latest sectoral deployment data from the Reserve Bank of India (RBI). Among wholesale and retail trade, the former saw Rs 3.77 lakh crore credit deployed, higher than Rs 3.68 lakh crore deployed to the retail trade in September. While the wholesale trade credit (other than credit to food procurement) registered 23 per cent growth during September vis-a-vis 8.2 per cent growth during September 2021, the retail trade credit grew by 19.6 per cent in comparison to 2.7 per cent during the year-ago period, indicating uptake in credit post their inclusion in the MSME category in July last year.

The YoY growth in August stood at 16.9 per cent from 7 per cent during the year-ago period with Rs 7.31 lakh crore in aggregate credit deployed to retail and wholesale trade during the month vis-a-vis Rs 6.26 lakh crore deployed in August last year. 

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According to a CareEdge Ratings report in October, credit offtake increased 17.9 per cent YoY, reaching a decadal high mark, for the fortnight that ended October 7, 2022, on the back of retail credit, higher working capital demand amidst high inflation, and lower funds raised in the capital market and is expected to remain elevated in the short term due to the ongoing festival season. 

In absolute terms, credit outstanding increased by Rs 19.6 lakh crore to Rs 128.6 lakh crore as of October 07 over the last 12 months with retail and wholesale contributing to the same. “Retail credit growth has been strong due to underlying demand, as credit outstanding saw a robust growth at 19.5 per cent y-o-y in August 2022 driven by the miniaturisation of credit, housing, and vehicle loans,” the report had said. 

Meanwhile, the aggregate credit to the overall MSME sector had increased by 27 per cent to Rs 18.55 lakh crore in September from Rs 14.61 lakh crore in September 2021, according to the RBI data. 

Also read: Bank credit to micro, small enterprises jumps 23% YoY in September: RBI data

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First published on: 03-11-2022 at 16:58 IST