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Non-food credit demand from banks rose by 6.6 per cent in October as against an increase of 6.7 per cent in the year-ago month, showed Reserve Bank data.
In September this year, non-food bank credit had risen by 6.1 per cent.
In the reporting month, advances to agriculture and allied activities rose by 5.5 per cent, down from 13 per cent in October 2016.
Loans to industry contracted by 0.2 per cent in October compared to a contraction of 1.7 per cent last year.
“Credit growth to major sub-sectors such as infrastructure, basic metals and metal products, vehicles, vehicle parts and transport equipment and cement and cement products contracted,” RBI data showed. However, credit growth to textiles, chemicals and chemical products, all engineering and food processing accelerated during the period.
Service sector loans rose by 9.4 per cent in the period, marginally up from 9.3 per cent in October 2016.
There was a slight decline in the personal loans segment at 16 per cent in the reporting month against an increase of 17 per cent last year same month.
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