Only 8% of gross bank credit of all scheduled commercial banks go rural areas

States with high banking penetration have low share of rural and semi-urban credit, according to data from Reserve Bank of India.

As on September 2012, the gross bank credit by all scheduled commercial banks in the country was Rs 4,888,207 crore. Of this, the share of rural credit was Rs 406,255 crore, or merely 8% of the credit, data from recently released quarterly statistics  on deposits and credit of scheduled commercial banks by the RBI show. The share of semi-urban credit was about 10%, while the share of urban/ metropolitan credit was about 82%.

Little surprise, informal sources of credit are predominant source of credit in rural and semi-urban areas.

Read more >>Click here