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Bank credit growth to industries halved in November

Mumbai: Bank loan growth to industries almost halved in November, but it nearly doubled to the farm sector on annual basis, according to the RBI.

"Credit to the industry increased by 7.3 percent in November 2014 as compared with an increase of 13.7 percent in
November 2013," the Reserve Bank said in statement.

 Bank credit growth to industries halved in November

The RBI logo. Reuters

Deceleration in credit growth to the industry was seen in all major sub-sectors, except construction, beverages and tobacco and mining and quarrying.

On the other hand, rate of loan growth to agriculture and allied activities increased by 20.2 percent, up from 11 percent in November 2013.

Another key aspect of sectoral disbursal of bank loan was that on a year-on-year basis, non-food credit increased by 11 percent in the month under review as compared to 14.7 percent.

However, the growth was almost flat in the personal loan segment.

RBI further said credit to the services sector increased at a much slower pace of 9.9 percent compared 18.1 percent in November 2013, with deceleration observed in all major sub-sectors.

PTI

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Updated Date: Dec 31, 2014 21:35:25 IST

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