Banking - Sectoral Credit Deployment In June: Systematix
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Systematix Research Report
In June 2021 (as of 18th), Schedule Commercial Banks’ non-food credit growth remained muted at 5.9% YoY versus 5.9% in May 2021 and 6% in June 2020.
Growth was driven by the retail and agriculture segments, which grew by 11.9%/11.4% respectively on a YoY basis.
Credit offtake in the services sector moderated to 2.9% YoY as non banking financial companies credit book continued to contract.
Credit demand in the industrials sector slipped into negative territory at 0.3% after witnessing traction for three consecutive months.
Net credit expansion has improved on an incremental basis.
As against credit contraction in the first two months of FY22, incremental credit expanded by Rs 120 billion on a month-on-month basis in June 2021 (as of 18th) led by the services sector, while agriculture/industrials/retail sectors witnessed a contraction of Rs 4 billion/Rs 165 billion/Rs 7 billion respectively on a month-on-month basis.
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