Non-food bank credit grew 16.7 per cent in January, much higher than 8.3 per cent in the year-ago period, as per data released by the Reserve Bank of India.

Credit growth to agriculture and allied activities improved to 14.4 per cent from 10.4 per cent, whereas that to the industry grew at 8.7 per cent compared with 5.9 per cent a year ago, as per data on Sectoral Deployment of Bank Credit in January.

Credit to the services sector rose by 21.5 per cent YoY in January compared with 5.7 per cent a year ago, primarily due to the improved credit offtake to non-banking financial companies, RBI said in a release.

Personal loan up

Growth in personal loans too accelerated to 20.4 per cent from 12.8 per cent a year ago, largely driven by housing and vehicle loans, it added.

With regards the credit to the industrial sector, credit to large industries grew by 6.5 per cent, a big jump from 0.2 per cent a year ago. However, growth in credit to medium industries slowed to 18.1 per cent as against 52.4 per cent, and to micro and small industries slowed to 15.2 per cent from 23.3 per cent in January 2022.

Sectors such as basic metal and metal products, beverage and tobacco, cement and cement products, chemicals and chemical products, food processing, 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 engineering, construction, gems and jewellery, infrastructure, leather and leather products, paper and paper products, rubber, plastic and their products and textiles.