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Charts & Analysis

Chart Of The Day: Bank Loans By Sector

RBI releases a report on the Deployment of Bank Credit by Sector, on a monthly basis. The chart of the day has an treemap plot of this data.

The size of a block corresponds to the amount of credit to that sector, and the color is the growth over last year (scale on top right).

Bank Credit

(Click for larger image)

Notes:

  • Industry has around 45% of bank credit.
  • Loans to NBFCs grew the fastest at 55%.
  • Food Credit grew 50%. This element is prone to abuse and corruption.
  • Individual Real Estate loans are 9.5% of total bank credit and Commercial Real Estate, just 3%. Of course, it might just be that the way loans are reported might skew the purpose (a commercial loan could be used to buy real estate)
  • Priority Sector Housing (<25 lakhs?) which is included in “Housing” above is about 6% of total bank credit – meaning only 3% of bank credit is given for houses above Rs. 25 lakh?
  • The rest of our deposits (which total around 55 lakh cr) is invested in government bonds. The government borrows just about as much as industry. If the deficit increases, it will need to borrow more, which will crowd out industry and/or agriculture.