Share of female borrowers in bank loans declines slightly

The share of female borrowers in total outstanding individual loans in the banking sector decreased slightly to 22.54% in FY2022 from 22.65% the previous year. However, women‘s total credit outstanding increased by 13.92% from Rs 10.27 lakh crore to Rs 11.70 lakh crore in March 2022, according to the latest data from the Reserve Bank of India.

According to the RBI, up to Rs 6.64 lakh crore of female loans were personal loans while housing loans accounted for Rs 3.80 lakh crore. The total number of female borrower credit accounts was 9.12 crore compared to 8.66 crore last year. The outstanding amount of female borrowers in agricultural credit was Rs 3.28 lakh crore in accounts of 4.28 crore and Rs 33,350 crore in industry.

Most banks offer women a discount on home loans which are considered a safe credit route by bankers.

On the other hand, male borrowers had an outstanding loan balance of Rs 40.20 lakh crore through accounts of 17.47 crore in March 2022, an increase of 14.62% from the previous year. Total outstanding individual loans including male and female borrowers increased to Rs 51.90 lakh crore in accounts of 26.59 crore in FY22 from Rs 45.34 lakh crore in FY2022 in accounts of 24.26 crore, the RBI said.

As many as Rs 12.87 crore of outstanding male borrowers were in home loans through 80.36 lakh accounts while Rs 26.12 lakh crore outstanding were in personal loans.

The RBI said the household sector accounts for more than half of total bank credit, indicating the high indebtedness of this segment. Lending to the household sector remained robust and its share in total credit stood at 53.8% in March 2022. Total household credit rose to Rs 63.93 lakh crore from 28.40 crore accounts in March 2022 against Rs 56.43 lakh crore loans in 26.30 crore accounts of the previous year.

The central bank said bank credit growth (year-on-year), which stood at 5.1% in March 2021, has increased in successive quarters of 2021-22 to double digits by March. 2022. Metropolitan branches led the credit expansion and accounted for 54.5% of additional credit in 2021-22, while lending from rural, semi-urban and urban bank branches also recorded double-digit annual growth.

Working capital loan growth accelerated in successive quarters of 2021-22 to reach 7.1% in March 2022. The weighted average lending rate (WALR) on outstanding loans decreased by 42 basis points (bps) in 2021-22 and by 24 bps in the quarter ended March 2022, the RBI said.

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