Loans & Advances
Loans & Advances, also called bank credit, refers to the amount of credit available to a business or individual from a banking institution in the form of loans. Banks and financial institutions make money from the funds they lend out to their clients. These funds come from the money clients deposit in their checking and savings accounts or invest in other investment vehicles. In return for using their services, banks pay clients a small amount of interest on their deposits. This money is then lent out to others and is known as bank credit.
Loans & Advances, also called bank credit, refers to the amount of credit available to a business or individual from a banking institution in the form of loans. Banks and financial institutions make money from the funds they lend out to their clients. These funds come from the money clients deposit in their checking and savings accounts or invest in other investment vehicles. In return for using their services, banks pay clients a small amount of interest on their deposits. This money is then lent out to others and is known as bank credit.
SUBJECT Variables
GROSS BANK CREDIT
- The total bank credit (food and non-food) outstanding as of Mar'22 stood at a record high of ₹11,891,314 crore, an 8.6% growth over a year ago.
SECTOR-WISE CREDIT
Valued based on bank credit data collected from a select number of scheduled commercial banks, accounting for about 90 percent of the total non-food credit deployed by all scheduled commercial banks.
- 26.2% of the gross bank credit outstanding in Mar'23 was deployed to the Industry sector while 32.1% was deployed as personal loans.
- The share of gross bank credit outstanding to the Agriculture sector in the total gross bank credit outstanding has been steadily increasing - from 11.8% in 2013-14 to 13.2% in 2022-23.
- 28.3% of the gross bank credit outstanding in Mar'23 was deployed to the Services sector, in comparison to 27.2% a year ago.
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