Lok Sabha Question No. 1725 (UNSTARRED), answered on 2023-02-13
Subject: Bank Loans
Ministry: FINANCE
Asked by: Asaduddin Owaisi

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA

## UNSTARRED QUESTION NO. 1725

To be answered on the February 13, 2023/Magha 24, 1944 (Saka)

## Bank Loans

## 1725. SHRI ASADUDDIN OWAISI:

Will the Minister of FINANCE be pleased to state:

- (a) whether in the past industry have been the major recipient of bank credit accounting over 60 per cent of bank loans;
- (b) if so, whether home loans and personal loans have over taken the loans to business;
- (c) if so, the reasons therefor;
- (d) whether credit to manufacturing business has grown at lower pace as compared to other sectors; and
- (e) if so, the details thereof along with the present position of bank credit to industries and other segments like personal and home loans and their rate of growth?

## ANSWER

## THE MINISTER OF STATE FOR FINANCE (DR. BHAGWAT KARAD)

(a) to (c): As per the Reserve Bank of India's (RBI's) Report on Trend and Progress of Banking in India 2021-22, deployment of credit by the Scheduled Commercial Banks (SCBs) to Industry in FY 2019-20, FY 2020-21 and FY 2021-22 is 32.2 per cent, 30.6 per cent and 29.6 per cent of gross bank credit, respectively. Further, deployment of credit by SCBs to business (comprising Industry and Services) and Retail (comprising Home Loans, Auto Loans, Education Loans etc.), as on Mar-22, is ₹ 66.57 lakh crore and ₹ 33.94 lakh crore, respectively.

- (d) and (e): The growth of credit deployment by SCBs to industry, services and retail loans for FY 2021-22 is 7.8 per cent, 14.7 per cent and 13.6 per cent, respectively, the details of which are at Annex.

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## Annex

## Lok Sabha Unstarred Question no. 1725 for answer on 13.2.2023 regarding ' Bank Loans '

## Sectoral Deployment of Gross Bank Credit by SCBs

(amount in ₹ crore)

| Sr.   |                                | Outstanding at end   | Outstanding at end   | Outstanding at end   |
|-------|--------------------------------|----------------------|----------------------|----------------------|
| No.   | Item                           | Mar-20               | Mar-21               | Mar-22               |
| 1     | Agriculture &Allied Activities | 12,39,575            | 13,84,815            | 15,16,303            |
| 2     | Industry , of which            | 32,52,801            | 32,53,636            | 35,08,744            |
|       | Micro & Small Industries       | 4,37,658             | 4,72,529             | 6,14,037             |
|       | Medium                         | 1,12,367             | 1,87,599             | 2,63,959             |
|       | Large                          | 26,11,377            | 24,76,702            | 24,88,228            |
| 3     | Services                       | 27,54,823            | 27,45,324            | 31,48,321            |
| 4     | Retail Loans , of which        | 26,59,249            | 29,86,457            | 33,94,028            |
|       | Housing Loans                  | 13,96,444            | 15,61,913            | 17,54,298            |
|       | Consumer Durables              | 11,154               | 21,569               | 37,349               |
|       | Auto Loans                     | 2,89,366             | 3,29,522             | 3,79,139             |
|       | Education Loans                | 79,056               | 78,823               | 84,677               |
|       | Other Retail Loans             | 8,83,229             | 9,94,630             | 11,38,565            |
| 5     | Other Non-Food Credit          | 1,38,439             | 2,09,869             | 2,27,268             |
| 6     | Non-food Credit (1- 5)         | 1,00,44,887          | 1,05,80,100          | 1,17,94,665          |
| 7     | Gross Bank Credit              | 1,00,98,420          | 1,06,40,808          | 1,18,53,392          |

Source: RBI's Report on Trend and Progress of Banking in India 2021-22 Off-site returns (domestic operations)

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