Maharashtra accounted for 28.4 per cent of outstanding bank credit in June 2018, according to the latest Reserve Bank of India data. This means that for every Rs 100 banks had lent as on June 30, Rs 28.4 was in Maharashtra. In comparison, it was only Rs 27.92 for the whole of southern region and Rs 21.74 for the north.
In the pecking order of bank credit destinations, Delhi stood second at Rs 12.33 of every Rs 100 lent by banks, followed by Tamil Nadu (Rs 9.59), Karnataka (Rs 6.57) and Gujarat (Rs 5.61). But Maharashtra’s large base was likely a reason why the year-on-year growth in bank credit was only 8.25 per cent.
That was not only short of the 11.8 per cent bank credit growth for India as a whole, but also one of the lowest in the country. Clearly, banks are expanding into under served markets, as can be seen seen from the fact that Tripura (176.19 per cent), Manipur (51.09 per cent) and Sikkim (35.58 per cent) reported much faster growth rates.
Where did this bank credit go in the state?
A good 37.59 per cent went to industry, while 17.13 per cent to finance. The corresponding proportions on an all-India basis are 34.78 per cent and 8.44 per cent, respectively. Personal loans accounted for Rs 19.52 of every Rs 100 lent in Maharashtra compared to Rs 22.22 all-India average. Within this, housing was the key loan area. It accounted for Rs 12.64 of every Rs 100 lent in Maharashtra.