FinMin flags low PSB credit to labour-intensive sectors

‘The finance ministry has raised concerns with public-sector banks (PSBs) on the low credit growth to labour-intensive sectors during the last five years up to FY25.

- HARSH KUMAR

In this period, the above %100 crore segment saw credit to the finance category surge by 17.7 per cent. In contrast, their credit to sectors, such as manufacturing and mining, rose only 1.3 per cent, according to a senior government official.This comes at a time when labour-intensive export-oriented sectors face job losses due to the punitive 50 per cent tariff by the US administration.

“Credit growth to the manufacturing and mining sectors is worrying. PSBs need to pull themselves up in these sectors,” said the official.

The official further said that the advances to agriculture and retail sectors touched 92 per cent and 98 per cent, respectively, in the below %10 crore loans category.