Growth of bank credit to industry, agriculture slows in September
31 Oct 2011
The flow of bank credit to industry slackened to 22.9 per cent in September 2011 compared with a growth of 24.4 per cent in the previous year, showing a decline in credit offtake by the various sectors, including infrastructure, metals and metal products, engineering, gems and jewellery, petroleum, coal and nuclear fuels and mining and quarrying.
Agricultural credit also showed a decline to 7.9 per cent in September 2011 compared with a 19.3 per cent growth in September 2010.
Bank credit to the service sector, however, increased by 19.3 per cent in September 2011 against a growth of 17.4 per cent in the previous year.
Overall non-food credit increased by 18.7 per cent in September 2011, unchanged from the previous year.
Bank credit to the commercial real estate (CRE) sector, however, increased by 12.6 per cent year-on-year in September 2011 against a 7.9 per cent growth recorded in the previous year.
Credit flow to non-banking finance companies showed the most significant growth of 46.2 per cent in September 2011 against a growth of 18.5 per cent in September 2010, data provided by the Reserve Bank of India (RBI) showed.
Personal loans also increased by 15.2 per cent in September 2011, a significantly higher rate compared to the growth of 8.6 per cent in the previous year. Most of the components of personal loans such as housing, advances against fixed deposits, advances to individuals against shares, bonds, etc, and vehicle loans registered accelerated growth.
RBI has based the figures on data collected from 47 select scheduled commercial banks, which together account for about 95 per cent of the total non-food credit deployed by scheduled commercial banks in the country.
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