Large industry accounted for a bulk of lending by banks in the last four months. Lending to infrastructure accounted for 40% of the total lending to industry. Despite the rise in crude oil prices, however, bank lending to the petroleum sector did not show a significant jump during the period.
The sectors that have shown a drop in bank loans outstanding during the past four months are micro-credit (down 13%), credit cards (down 5%) and, rather surprisingly, export credit.
Also see | Break-up Of The Increase In Non-Food Credit By Sectors (PDF)
Micro-credit has been affected by the crisis in the microfinance industry, while credit card lending was reduced after a pile up of bad debts in the business.
At the other extreme, bank lending to non-banking financial companies (NBFCs) increased by 21.7% over the last four months, probably leading to the clampdown on such loans by RBI.
Graphic by Yogesh Kumar/Mint
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