Non-financial loans up 11.9 per cent at Rs 371 lakh crore in September quarter: Report

The country’s non-financial sector debt grew by 11.9 per cent year-on-year to Rs 371 lakh crore, or 170.2 per cent of GDP, in the September quarter of the current fiscal. The biggest increase has been in the general debt of the government. Giving this information in a report, it has been said that there has been a slight reduction in the debt burden on the families during this period.

In the report of Motilal Oswal Financial Services, it has been said that in the same period of the last financial year, the debt was more than this i.e. 180.2 percent of GDP. In the last financial year, the GDP at current prices had declined by three per cent. This figure was the highest for debt. Earlier it was 155 percent in the financial year 2019-20.

According to the report, the debt-to-GDP ratio declined to 170.2 percent in the June quarter of 2021. At the same time, GDP normalized at current prices and its growth was 14.7 percent.

General government debt (Centre and states combined) grew at 16.1 per cent in the September quarter, while non-government, non-financial debt grew at a slower pace of 7.7 per cent.

The total debt of the non-financial sector stood at Rs 371 lakh crore in September 2021, from Rs 356 lakh crore in March 2021 and Rs 361 lakh crore in June 2021.

Government debt is the main reason behind the high increase in debt in the last few quarters. General government debt continued to grow at 16.1 per cent in September 2021.

On the other hand, non-government and non-financial debt grew by 7.7 per cent or 83.5 per cent of GDP in the second quarter of the current fiscal. This is much lower than the high of 90.9 per cent in the same quarter of the previous financial year. This was its highest level in nine quarters.

During this period, the pace of growth of household loans also slowed down to a five-quarter low of 9.1 percent.

Debt to households declined to 34.9 per cent of GDP in the second quarter of the current financial year from a high of 38.1 per cent in the fourth quarter of the previous financial year.

Non-financial corporate debt also stood at 48.6 per cent of GDP, reaching an all-time high of 52.8 per cent in the first quarter of the last fiscal.