Lead by a tepid 1 percentage point growth in industrial credit, non-food credit as a whole of banks rose by 8.8 per cent in November, which is almost double from the 4.8 percentage point growth clocked in the year-ago month, according to the RBI data released today. Significantly, advances to the industry rose by 1 percentage point in the reporting month compared to a 3.4 percentage point contraction in the year-ago month. In October this year, non-food bank credit had risen by 6.6 per cent. Credit to agriculture and allied activities increased by 8.4 per cent in the reporting month which is slower than the 10.3 per cent growth in the same month last year.
Personal loans increased by 17.3 per cent compared to 15.2 per cent growth in the same moths last year. “Credit to major sub-sectors such as infrastructure, vehicles, vehicle parts and transport equipment, basic metal and metal products and mining & quarrying contracted,” the central bank said. However, credit growth to textiles, chemical & chemical products, all engineering, food processing and construction accelerated. Loans to the services sector increased by 14 per cent in the month, up from 7.1 per cent in November last year, RBI data showed.