Bank credit for services up three-fold in Apr-Dec 22 as economy picks up

Credit to NBFCs and trade (wholesale and retail) showed maximum traction, RBI data showed

Bank loans to the services sector grew three-fold to Rs 4.87 trillion in April-December 2022 from Rs 1.55 trillion in the same period last year, matching the uptick in economic activity.

 Credit to Non-Banking Finance Companies (NBFCs) and trade (wholesale and retail) showed maximum traction, Reserve Bank of India (RBI) data showed.

Commercial real estate, which is part of the services sector, also showed traction in the nine months. Besides business activity, inflation has increased the use of working capital, bankers said.

In contrast to the services sector, the growth in bank loans to the industry was subdued. Banks disbursed