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The Reserve Bank of India, vide directive DCBS.CO.BSD-I/D-4/12.22.141/2016-17 dated August 31, 2016, had placed Maratha Sahakari Bank ltd, Mumbai under Directions from the close of business on August 31, 2016. The validity of the directions was extended from time-to-time, the last being up to September 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 November 30, 2021 as per the directive DOR.MON/D-39/12.22.140/2021-22 dated September 30, 2021, subject to review.

3. All other terms and conditions of the Directives under reference shall remain unchanged. A copy of the directive dated September 30, 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: 2021-2022/965

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 August 2021, are set out in Statements I and II.

On a year-on-year (y-o-y) basis, non-food bank credit¹ growth stood at 6.7 per cent in August 2021 as compared to 5.5 per cent in August 2020.

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

• Credit to agriculture and allied activities continued to perform well, registering an accelerated growth of 11.3 per cent in August 2021 as compared to 4.8 per cent in August 2020.

• Credit growth to industry picked up to 2.3 per cent in August 2021 from 0.4 per cent in August 2020. Size-wise, credit to medium industries registered a robust growth of 63.4 per cent in August 2021 as compared to 4.4 per cent last year. Credit to micro and small industries accelerated to 10.1 per cent in August 2021 from a contraction of 1.1 per cent a year ago, while credit to large industries contracted by 1.7 per cent in August 2021 as compared to a growth of 0.5 per cent a year ago.

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

• Credit growth to the services sector moderated to 3.5 per cent in August 2021 from 10.9 per cent in August 2020, mainly due to contraction in credit growth to NBFCs and commercial real estate.

• Personal loans registered an accelerated growth of 12.1 per cent in August 2021 as compared to 8.5 per cent a year ago, primarily due to faster credit growth in housing, vehicle loans and loans against gold jewellery.

Ajit Prasad
Director   

Press Release: 2021-2022/959

Today, the Reserve Bank released its web publication entitled ‘Quarterly Basic Statistical Returns (BSR)-1: Outstanding Credit of Scheduled Commercial Banks (SCBs), June 2021’ on its Database on Indian Economy (DBIE) portal (web-link: https://dbie.rbi.org.in/DBIE/dbie.rbi?site=publications#!12). It captures various characteristics of bank credit such as occupation/activity and organisational sector of the borrower, type of account and interest rates. Data reported by 88 SCBs (excluding Regional Rural Banks) are presented for bank groups, population groups and states¹.

Highlights:

• Bank credit growth (y-o-y) edged up to 5.8 per cent in June 2021 from 5.1 per cent a quarter ago.

• Personal loans growth accelerated to 14.8 per cent on y-o-y basis after some moderation since the onset of the Covid-19 pandemic; its share in bank credit increased to 26.6 per cent in June 2021 (24.5 per cent a year ago and 18.9 per cent five years ago).

• Bank credit to the industrial sector continued to decline, resulted in further lowering of its share in total credit to 28.6 per cent (30.8 per cent a year ago and 40.7 per cent five years ago).

• Credit to individuals in the household sector² continued to rise and their share in total loans increased to 43.3 per cent from 34.2 per cent five years ago; female borrowers had nearly 22 per cent share in the amount of credit to individuals.

• Working capital loans (viz., cash credit, overdraft and demand loans) accounted for a third of total credit and followed the seasonal contraction in first quarter of financial year; their annual growth (y-o-y), nevertheless, turned positive in the latest quarter.

• Bank branches in urban, semi-urban and rural centres maintained double digit credit growth (y-o-y) in June 2021 but credit extended by metropolitan branches, which accounted for nearly 63 per cent of total credit, recorded low growth of 2.7 per cent.

• With their faster credit growth, private sector banks have increased their share in total credit to 36.6 per cent from 25.7 per cent five years ago, at the cost of public sector banks whose share declined from 69.0 per cent to 58.1 per cent over the same period.

• Weighted average lending rate (WALR) on outstanding credit stood at 9.25 per cent in June 2021, which reflected a moderation of 7 basis points (bps) during the latest quarter and 72 bps over the last one year.

Ajit Prasad
Director   

Press Release: 2021-2022/958