Money & Banking

Non-food bank credit growth accelerates to 6.9% in October

Our Bureau | | Updated on: Nov 30, 2021
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Credit growth to services slows

Non-food bank credit growth accelerated to 6.9 per cent in October 2021 as compared to 5.2 per cent in October 2020, according to the Reserve Bank of India’s data on sectoral deployment of bank credit.

Agri sector sees accelerated growth

Non-food bank credit growth was propelled by credit to agriculture and allied activities, industry and personal loans. A slowdown in credit growth to services continued.

RBI observed that credit to agriculture and allied activities continued to perform well, registering an accelerated growth of 10.2 per cent in October 2021 as compared to 7.2 per cent in October 2020.

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Credit growth to industry picked up to 4.1 per cent in October 2021 from a contraction of 0.7 per cent in October 2020.

Credit to industries

Within industry, credit to medium industries registered a robust growth of 48.6 per cent in October 2021 as compared to 20.8 per cent last year. Credit to micro and small industries accelerated to 11.9 per cent in October 2021 from 0.7 per cent a year ago. Credit growth to large industries stood at 0.5 per cent in October 2021 as compared to a contraction of 1.8 per cent a year ago.

Credit growth of services decelerated to 2.9. per cent in October 2021 from 8.6 per cent a year ago.

Personal loans continued to grow at a robust rate of 11.7 per cent in October 2021 vis-a-vis 8.7 per cent in October 2020, primarily due to housing, vehicle loans and loans against gold jewellery.

Published on November 30, 2021

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