Non-food bank credit grew 15.9 per cent in February, much higher than 9.2 per cent in the year-ago period. However, the rise was lower than the 16.7 per cent year- on-year(y-o-y) growth seen in January, as per data released by the Reserve Bank of India.

Credit growth to agriculture and allied activities improved to 14.9 per cent from 10.3 per cent, whereas that to the industry grew at 7.0 per cent compared with 6.7 per cent a year ago, as per data on Sectoral Deployment of Bank Credit for February.

Credit to the services sector rose by 20.7 per cent y-o-y in February, slightly slower than 21.5 per cent y-o-y growth seen in the previous month. However, it was much higher compared with 6.2 per cent a year ago, primarily due to the improved credit offtake to NBFCs, RBI said in a release. 

Personal loans

Growth in personal loans too accelerated to 20.4 per cent from 12.5 per cent a year ago, largely driven by housing loans, it added. The growth was flat compared with January.

Within credit to the industrial sector, credit to large industries grew by 5.0 per cent, a big jump from 0.9 per cent a year ago. However, growth in credit to medium industries slowed to 13.5 per cent as against 53.8 per cent, and to micro and small industries slowed to 13.2 per cent from 24.0 per cent in February 2022.

Loan growth

Sectors such as all engineering, basic metal and metal products, beverage and tobacco, cement and cement products, chemicals and chemical products, construction, glass and glassware, mining and quarrying, petroleum, coal products and nuclear fuels, vehicles, vehicle parts and transport equipment, and wood and wood products saw an increase in loan growth over the one-year period.

On the other hand, credit slowed down to sectors such as food processing, gems and jewellery, infrastructure, leather and leather products, paper and paper products, rubber, plastic and their products, and textiles.