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Propelled by robust growth in credit to the services sector and in personal loans, banks’ non-food credit growth rose 12.4 per cent year-on-year (y-o-y) in August 2018 compared with an increase of 5.5 per cent in August 2017.
As at August-end 2018, non-food credit, comprising agriculture and allied activities, industry, services and personal loans, stood at ₹77,70,400 crore.
According to RBI data on Sectoral Deployment of Bank Credit (collected from select 41 scheduled commercial banks), accounting for about 90 per cent of the total non-food credit deployed by all SCBs), credit to the services sector expanded 26.7 per cent in August 2018 compared with 5 per cent in August 2017. Personal loans increased by 18.2 per cent in August 2018, up from an increase of 15.7 per cent in August 2017.
Credit to agriculture and allied activities increased by 6.6 per cent in August 2018 in comparison with an increase of 6.5 per cent in August 2017.
Credit to industry rose by 1.9 per cent in August 2018 as against a contraction of 0.3 per cent in August 2017.
Credit to major sub-sectors such as infrastructure, textiles, chemical and chemical products and ‘all engineering’ accelerated, the RBI said.
However, credit to basic metal and metal product, cement and cement products, gems & jewellery and paper and allied products contracted.
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