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Bank credit to infrastructure sector surges 18.5% in FY19: RBI
May-21-2019

Reserve Bank of India (RBI) in its latest data has showed that bank credit to infrastructure sector surged by 18.5 per cent to Rs 10.55 lakh crore as of 2018-19 (FY19), the highest since 2012-13 fiscal. Outstanding bank credit to the sector was Rs 8.91 lakh crore as at March 2018. In FY18 and FY17, growth in bank credit to the sector was negative at 1.7 per cent and 6.1 per cent, respectively. In the fiscal year ended March 2013, loans to infrastructure sector had grown by 15.83 per cent to Rs 7.29 lakh crore.

According to RBI data, bank loans to the overall industrial sector grew by 6.9 per cent to Rs 28.58 lakh crore in FY19. In FY18, loans to industries had grown by 0.7 per cent. Within infrastructure, bank loans to power sector had increased by 9.5 per cent to Rs 5.69 lakh crore compared to Rs 5.19 lakh crore in FY18. Roads sector witnessed a credit growth of 12.2 per cent to Rs 1.86 lakh crore as of end-March 2019. 

Credit to telecommunications and other infrastructure (excluding roads, power and telecom) rose by 36.7 per cent and 53.5 per cent, respectively over FY18. Besides, in FY19, total bank credit rose 13.24 per cent and deposits grew by 10.03 per cent. This is the second consecutive double-digits credit growth after the same had declined to 4.54 per cent, which was the lowest since 1963.

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