The Reserve Bank of India (RBI) has published its latest web report, ‘Quarterly Basic Statistical Returns (BSR)-1: Outstanding Credit of Scheduled Commercial Banks (SCBs) – December 2024’.
The report provides insights into various aspects of bank credit, including borrower occupation/activity, organizational sector, account type, and interest rate distribution. Data from Scheduled Commercial Banks (SCBs), excluding Regional Rural Banks (RRBs), is analyzed across different bank groups, population categories, and states.
Key Highlights
🔹 Credit Growth Slows: Year-on-year (YoY) bank credit growth declined to 11.8% in December 2024, compared to 12.6% in September 2024. Despite this moderation, all population groups—rural, semi-urban, urban, and metropolitan—continued to record double-digit growth, with both public and private sector banks experiencing a slowdown.
🔹 Personal Loan Growth Moderates: Personal loans, which account for 31.5% of total credit, saw annual growth slow to 13.7%, down from 15.2% in the previous quarter. Credit growth in the agriculture and industry sectors also showed signs of moderation.
🔹 Increase in Lending for Trade & Services: Bank lending accelerated in trade, finance, and professional/other services during Q3 of FY 2024-25.
🔹 Higher Lending to Public Sector: Credit to public sector organizations grew significantly, rising to 5.4% in December 2024, compared to just 0.3% in the previous quarter. Public sector loans accounted for 13.6% of total credit.
🔹 Bills Discounting: Nearly 2% of total bank loans were in the form of bills purchased or discounted.
🔹 Interest Rate Trends:
- Over 50% of total loans carried interest rates between 8% and 10%.
- Nearly 16% of loans were issued at interest rates below 8%.
- The remaining loans were extended at 10% or higher interest rates.
This report highlights the evolving trends in bank lending, with a slowdown in overall credit growth, shifting sectoral priorities, and variations in interest rate distributions.
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