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Monetary Management and Financial Intermediation 133

improving steadily since July 2021 and accelerated to 3.8 per cent in November 2021. Medium
industries, particularly, have witnessed high double-digit growth for over a year and credit growth
to the segment was at 48.7 per cent in November 2021, as compared with 25.7 per cent in November
2020. Credit growth to micro & small industries accelerated to 12.7 per cent in November 2021
from 0.6 per cent a year ago, reflecting effectiveness of various measures taken by the Government
and the RBI to boost credit flow to the micro, small and medium enterprises (MSME) sector.
Credit to large industries broadly remained at the same level as of last year.

Figure 14: Growth (YoY) in Sectoral Credit

35

30
25
20
per cent 15

10
5
0
Jun-18 Aug-18 Oct-18 Dec-18 Feb-19 Apr-19 Jun-19 Aug-19 Oct-19 Dec-19 Feb-20 Apr-20 Jun-20 Aug-20 Oct-20 Dec-20 Feb-21 Apr-21 Jun-21 Aug-21 Oct-21
-5

Agriculture & Allied Activities Industry Services Personal Loans
Source: RBI

4.29 Services sector credit growth, however, is yet to recover. The subdued credit growth in the
sector was due to sluggish growth in almost all segments. The growth in bank credit to NBFCs
was 5.2 per cent in November 2021. In the current financial year, NBFCs directly raised finance
from money and debt markets given the easy financial conditions. The bank credit growth to
commercial real estate sector was 0.4 per cent in November 2021.

4.30 Growth in personal loans improved to double digits at 11.6 per cent in November 2021
as compared with 9.2 per cent in the previous year. Housing loans, the largest constituent of
personal loans, registered growth of 8 per cent in November 2021. The growth of vehicle loans,
the second largest constituent of personal loans improved to 7.7 per cent in November 2021
from 6.9 per cent in November 2020 (Table 6).

Table 6: Growth (YoY) in Bank Credit by Major Sectors (per cent)
Sector Mar-18 Mar-19 Mar-20 Mar-21 Nov-20 Nov-21
Agriculture & allied activities 3.8 8.5 4.0 9.4 7.0 10.4

Industry 0.7 5.8 0.9 0.5 0.7 3.8
Micro & Small 0.9 0.7 -0.6 2.8 0.6 12.7
Medium -1.1 -2.0 -0.2 34.1 25.7 48.7
Large 0.8 7.1 1.1 -1.3 -0.4 0
Services 13.8 15.3 9.0 2.7 8.2 3.6