Surge in credit to NBFCs takes service sector loans past those to industry

RBI data shows that as of November 18, outstanding loans to the services sector amounted to Rs 33.15 trillion while those to industry stood at Rs 32.94 trillion

Higher credit offtake by non-banking finance companies (NBFCs) has seen credit to the service sector surpassing the quantum of loans from banks to the industrial sector, shows Reserve Bank of India’s latest sectoral deployment data for November 2022.

According to the latest data, as of November 18, outstanding loans to the services sector amounted to Rs 33.15 trillion while those to industry stood at Rs 32.94 trillion. On a year-on-year (YoY) basis, the credit to services sector grew by 21.3 per cent in November 2022 as compared with 3.2 per cent a year ago.

Similarly, credit growth to industry accelerated