Growth in non- food credit offtake from banks by major sectors slowed to 15.4 per cent in December, 2011, the lowest rate so far this fiscal, reflecting the impact of the high interest rate regime on the economy.
Credit growth in the non-food sector stood at 27.2 per cent in the same month of the previous year.
All segments, including farm sector, services, industry and personal loans, reported lower credit growth offtake in December as compared to the same month of 2010 as per the latest data released by the Reserve Bank of India (RBI).
“On a year—on—year basis, non-food bank credit increased by 15.4 per cent in December, 2011, as compared with 27.2 per cent in the same period of the previous year,” the RBI said.
According to experts, the prevailing high interest rate regime has affected credit growth.
Total non-food credit disbursement stood at Rs 40.45 lakh crore in December, up from Rs 35.05 lakh crore in the same month of the previous fiscal.
As per the data, total credit disbursement to agriculture and allied areas grew by only 5.6 per cent to Rs 4.60 lakh crore in December. Credit offtake in this segment had risen as high as 25.4 per cent on an annual basis in December, 2010.
“Credit to industry increased by 19.8 per cent year—on—year in December, 2011, as compared with 31.6 per cent in the previous year...,” the RBI said.
Total credit disbursement to industry - which includes infrastructure, metals, food processing, rubber, plastic and their products and engineering - was Rs 18.58 lakh crore in December.
“Credit to the services sector increased by 14.9 per cent year—on—year in December, 2011, lower than 29.5 per cent in the previous year,” the RBI said.
The sector saw bank credit offtake rise to Rs 9.84 lakh crore in December this year.
Within the services space, segments including transport, computer software, tourism and commercial real estate witnessed slower growth in credit offtake in December, while disbursements to retail trade went up marginally.
“Credit to NBFCs on a year—on—year basis increased by 36.2 per cent in December, 2011, as compared with 50.1 per cent in the previous year,” the apex bank said.
Bank credit disbursement to the NBFC segment stood at Rs 2.10 lakh crore in December this year.
“Personal loans increased by 12.3 per cent (year—on—year) in December, 2011, as compared with 16.7 per cent in the previous year,” the RBI said.