Debt of large firms increased to 22.7 lakh crore in October

The growth in credit to small and medium-sized industries reached 4.1 percent in October 2021, from 0.7 percent in October 2020.

source: pixabay, India Ratings & Research upgraded the rating of 150 issuers during the first half of this financial year.

Corporates Turned: After 14 months of pressure, there has been an increase in the debt of big firms in October. According to the news of the Times of India, the debt of large firms increased by 0.5 per cent to Rs 22.7 lakh crore in October, compared to a decline of 1.8 per cent 12 months ago. Suman Choudhary, Chief Analytics Officer, Acuite Ratings said, “Gross Fixed Capital Formation (GFCF- Gross Fixed Capital Formation) has seen a growth of 10.7 per cent in the second quarter of FY 2022. Which is mainly driven by public capital expenditure, although there are signs of increase in private capital expenditure in the current financial year as well.

Credit enhancement for small and medium sized firms

The growth in credit to small and medium-sized industries reached 4.1 percent in October 2021, from 0.7 percent in October 2020. In terms of size, loans to medium industries increased by 48.6 percent in October 2021 as compared to 20.8. Credit to small and micro industries has increased from 0.7 percent to 11.9 percent in October 2021 as compared to a year ago.

Talking about large industries, the increase in loans given was at 0.5 percent in October 2021. Retail credit grew by 8.7 per cent in October 2021. Credit to agriculture and allied activities registered a growth of 10.2 per cent in October 2021 as compared to 7.2 per cent in October 2020.

There has been an increase in the credit of these products.

According to the RBI release, the industries which saw credit growth included engineering, chemicals and chemical products, food processing, gems and jewellery, mining and quarrying, rubber, plastics and their products and textiles. Metal products, beverages and tobacco, cement and cement products, construction, glass and glassware, leather and leather products, paper and paper products, petroleum, coal products and nuclear fuels, vehicles, vehicle parts and transport equipment Debt has increased. While there has been a decline in wood and products made from it.

Talking about personal loans, it is growing at a high rate of 11.7 percent in October 2021 as compared to 8.7 percent in October 2020. Which happened due to the demand for home loan, vehicle loan and loan against gold jewellery.

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