Category: Press Releases

The Data on sectoral deployment of bank credit collected from select 33 scheduled commercial banks, accounting for about 90 per cent of the total non-food credit deployed by all scheduled commercial banks for the month of March 2021, are set out in Statements I and II.

Highlights of the sectoral deployment of bank credit are given below:

• On a year-on-year (y-o-y) basis, non-food bank credit growth stood at 4.9 per cent in March 2021 as compared to 6.7 per cent in March 2020.

• Continuing its uptrend, credit growth to agriculture and allied activities accelerated to 12.3 per cent in March 2021 from 4.2 per cent in March 2020.

• Credit growth to industry decelerated marginally to 0.4 per cent in March 2021 from 0.7 per cent in March 2020. However, credit to medium industries registered a robust growth of 28.8 per cent in March 2021 as compared to a contraction of 0.7 per cent a year ago. Credit growth to micro and small industries decelerated to 0.5 per cent in March 2021 from 1.7 per cent a year ago, while credit to large industries contracted by 0.8 per cent as compared to a growth of 0.6 per cent a year ago.

• Within industry, credit to ‘food processing’, ‘textiles’, ‘gems & jewellery’, ‘paper & paper products’, ‘glass & glassware’, ‘wood & wood products’ and ‘leather & leather products’ registered accelerated growth in March 2021 as compared to the corresponding month of the previous year. However, credit growth to ‘mining & quarrying’, ‘rubber, plastic & their products’, ‘vehicle, vehicle parts & transport equipment’, ‘basic metal & metal products’, ‘cement & cement products’, ‘all engineering’, ‘chemical & chemical products’ and ‘construction’ decelerated/contracted.

• Credit growth to the services sector decelerated to 1.4 per cent in March 2021 from 7.4 per cent in March 2020, mainly due to deceleration in credit growth to NBFCs and contraction in credit to professional services. However, credit to trade segment continued to perform well, registering accelerated growth of 11.8 per cent in March 2021 as compared to 4.6 per cent a year ago.

• Slowdown in growth of personal loans continued, as it decelerated to 10.2 per cent in March 2021 from 15.0 per cent a year ago. However, vehicle loans and loans against gold jewellery continued to perform well during the month, registering accelerated growth.

(Yogesh Dayal)     
Chief General Manager

Press Release: 2021-2022/142

Rupambara
Director    

Press Release: 2021-2022/141

The Governor, Reserve Bank of India (RBI) held a meeting with the MD/CEOs of Small Finance Banks on April 30, 2021 through video conference. The meeting was attended by Deputy Governors Shri M. K. Jain, Dr. M.D. Patra, Shri M. Rajeswar Rao and a few other senior officials of RBI.

In his opening remarks, the Governor recognised the important role of the SFBs in delivering credit and other financial services to individuals and small businesses. He also emphasised the supervisory expectations in terms of maintaining their business resilience and managing risks prudently. He advised the banks to pay focussed attention on improving customer grievance redress process while also strengthening IT systems in the interest of the banks and their customers.

Among other matters, the following issues were discussed in the meeting.

1. Assessment of current economic situation;

2. Credit flows to different segments of borrowers;

3. Outlook on potential stress on banks’ balance sheets;

4. Liquidity scenario.

(Yogesh Dayal)     
Chief General Manager

Press Release: 2021-2022/140

In the underwriting auctions conducted on April 30, 2021 for Additional Competitive Underwriting (ACU) of the undernoted Government securities, the Reserve Bank of India has set the cut-off rates for underwriting commission payable to Primary Dealers as given below:

Rupambara
Director    

Press Release: 2021-2022/137

The Reserve Bank of India vide directive DCBS.CO.BSD-I/D-3/12.22.163/2018-19 dated October 26, 2018 had placed The Needs of Life Co-operative Bank Ltd, Mumbai under Directions from the close of business on October 29, 2018 for a period of six months. The validity of the directions was extended from time-to-time, the last being up to April 30, 2021.

2. It is hereby notified for the information of the public that the Reserve Bank of India, in exercise of powers vested in it under sub-section (1) of Section 35 A read with Section 56 of the Banking Regulation Act, 1949, hereby directs that the aforesaid Directions shall continue to apply to the bank till October 31, 2021 as per the directive DOR.MON/No.D-06/12.22.160/2021-22 dated April 26, 2021, subject to review.

3. All other terms and conditions of the Directives under reference shall remain unchanged. A copy of the directive dated April 26, 2021 notifying the above extension is displayed at the bank’s premises for the perusal of public.

4. The aforesaid extension and /or modification by the Reserve Bank of India should not per-se be construed to imply that Reserve Bank of India is satisfied with the financial position of the bank.

(Yogesh Dayal)     
Chief General Manager

Press Release: 2021-2022/136

A meeting of the Sub-Committee of the Financial Stability and Development Council (FSDC) was held today (April 29, 2021) in virtual format. Shri Shaktikanta Das, Governor, Reserve Bank of India, chaired the meeting.

The Sub-Committee undertook an extensive review of the major developments in the global and domestic economy as well as in various segments of the financial system and discussed the assessments of the members of the scenario emerging from the second wave of the COVID-19 pandemic. It also discussed various inter-regulatory issues and reviewed the activities of various technical groups under its purview and the functioning of State Level Coordination Committees (SLCCs) in various states / UTs. The members resolved to remain vigilant and proactive to ensure financial markets and financial institutions remained resilient in the face of fresh challenges brought on by the resurgence of the pandemic.

The meeting was attended by the members of the Sub-Committee – Shri Ajay Tyagi, Chairman, Securities and Exchange Board of India (SEBI); Dr. Subhash Chandra Khuntia, Chairman, Insurance Regulatory and Development Authority of India (IRDAI); Shri Supratim Bandyopadhyay, Chairman, Pension Fund Regulatory and Development Authority (PFRDA); Shri Injeti Srinivas, Chairperson, International Financial Services Centres Authority (IFSCA); Shri Ajay Seth, Secretary, Department of Economic Affairs; Shri Debasish Panda, Secretary, Department for Financial Services; Shri Tarun Bajaj, Secretary, Department of Revenue; Shri Rajesh Verma, Secretary, Ministry of Corporate Affairs; Shri Ajay Prakash Sawhney, Secretary, Ministry of Electronics and Information Technology; Dr. Krishnamurthy Subramanian, Chief Economic Adviser; Dr. Shashank Saksena, Secretary, Financial Stability and Development Council; Deputy Governors of the Reserve Bank – Shri Mahesh Kumar Jain, Dr. Michael Debabrata Patra and Shri M. Rajeshwar Rao; and Dr. O. P. Mall, Executive Director of the Reserve Bank. Shri Sudhaker Shukla, Whole Time Member attended on behalf of the Insolvency and Bankruptcy Board of India (IBBI).

(Yogesh Dayal)     
Chief General Manager

Press Release: 2021-2022/133