Credit growth to industry accelerates to 8.7%

Published on July 01, 2022

Current Context: Credit Growth to industry grew 8.7% in May, compared to 7.1% earlier, as per RBI data.

Credit growth continues for Small and Mid-size Businesses

Credit growth to medium industries grew 49.3% in May compared to 47.9% earlier.
The credit growth to micro and small industries has shown a drastic increase to 33% from 8.9% earlier.
The main reason behind it was a rise in economic activity, higher working capital limits due to rising input costs, and borrowing has also increased.
Apart from that, it has seen dramatic growth in agriculture and allied activities at 11.8% in May 2022.
As per RBI, an uptrend has been seen in retail loans which grew by 16.4%, especially in the housing and vehicle loans segments.
In addition to that, the non-food bank credit grew 12.6% compared to 4.9% a year ago.

Question:

Q.1 As per the RBI, The credit growth in micro and small industries has seen rapid increase to what percentage?

a. 45%
b. 33%
c. 52%
d. 30%