Mumbai: Parts of personal loans in bank loans have been for the first time exceeding overall loans to the industrial sector during the second quarter of the current financial year.
This has happened with a loan to the industry at the end of September 2021 shrank by Rs 66,239 Crore at the March 2021 level, while loans to individuals grew RS 73,011 Crore during the period.
According to data issued by the Reserve Bank of India, bank loans circulated on the last Friday of September was Rs 109.5 Lakh Crore.
From this, the share of loans to the industry fell to 26% (RS 28.3 lakh crore) from 27% a year earlier.
Personal loans, which are a quarter of all bank loans in September 2020, increased to 27% (RS 29.2 lakh crore) at the end of September 2021.
The decline in bank loans to the industrial segment was largely due to the company in the core industry.
Loans to the iron and steel industry fell by RS 39,249 Crore and loans for chemicals (which include fertilizers, medicines and petrochemicals) shrank by Rs 10,146 Crore in the six months ending September.
Some sectors that see credit growth are roads, ports and strength.
However, even this is not enough to show positive credit growth in the infrastructure segment.
The overall credit circulated in the large industrial shrank by 5% in the first six months of fiscal.
This has reduced industrial loan growth to 2.3% even though credit for small and medium businesses increases.
In the personal segment, the bank added RS 20,096 crore home loans to their portfolios in the past six months.
They also increased car loans and their gold loan books each Hospital 3,000 Crore.
Other personal loans rose by RS 45,000 Crore.
An extraordinary overall loan in the personal loan segment grew by Rs 73,000 Crore in the six months ended September 2021.
It has expanded a personal loan portfolio to Rs 29.18 Lakh Crore.
Data seems to indicate that the Bank has won the market share of financial companies in the credit market.
Usually, NBFC borrows from banks and debt markets and loans.
Bank credit to NBFC, which is the largest component in a loan for the service sector, shrinks by RS 61,124 Crore in the past six months.
It has produced a credit share to NBFCS down from 9% (Rs 9.4 lakh Crore) at the end of March 2021 to 8% (8.8 lakh crore rs) at the end of September 2021.
It has produced extraordinary bank loans to the service sector Decreased by 3% since March 2021.
According to Bankers, the decline in bank loans to large companies can be associated with their deleveraging coupled with a shift to the debt market where commercial money is available through commercial paper.
Some businesses see better cash realization and don’t feel the need to borrow.
In the NBFC segment, the classification of large borrowers as non-performing assets by the Bank can increase the decline in the segment.
Home loan portfolios display more consistency and not occasionally shrink like other segments because home loans are long-term and new distribution has a compounding effect on portfolio size.
In the first personal loan, the best credit for the industry
