Money & Banking

Non-food bank credit growth decelerates to 6.8% in May

Our Bureau Mumbai | Updated on June 30, 2020

Non-food bank credit growth decelerated to 6.8 per cent in May 2020 from 11.4 per cent in May 2019 due to deceleration in credit growth to agriculture and allied activities, industry, and personal loans, according to Reserve Bank of India (RBI) data.

As per RBI data on ‘Sectoral Deployment of Bank Credit ‘, credit growth to agriculture and allied activities decelerated to 3.5 per cent in May 2020 from 7.8 per cent in May 2019.

Credit growth to industry decelerated to 1.7 per cent in May 2020 from 6.4 per cent in May 2019.

“Within industry, credit growth to ‘beverage and tobacco’, ‘petroleum, coal products and nuclear fuels’ and ‘paper and paper products’ accelerated.

“However, credit growth to ‘chemicals and chemical products’ ’construction’, ’infrastructure’, ‘food processing’, ‘textiles’, and ‘all engineering’ decelerated/contracted,” the RBI said in a statement.

Personal loans, including consumer durables, housing (including priority sector housing), advances against fixed deposits, advances to individuals against shares and bonds, credit card outstanding, education, vehicle and other personal loansdecelerated to 10.6 per cent in May 2020 from 16.9 per cent in May 2019.

Credit growth to the services sector, including transport operators; tourism, hotels and restaurants; shipping; professional services; trade; and non-banking finance companies; slowed down to 11.2 per cent in May 2020 from 14.8 per cent in May 2019.

Published on June 30, 2020

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