Loans to industries stay anaemic

Aug 29 2014, 05:12 IST
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SummaryGrowth in loans to industries continued to be anaemic in July and rose at just 10.1% year-on-year to R25,07,900 crore compared with the growth of 15.9 % in the corresponding period in July 2013, latest data from the Reserve Bank of India on Thursday showed.

Growth in loans to industries continued to be anaemic in July and rose at just 10.1% year-on-year to R25,07,900 crore compared with the growth of 15.9 % in the corresponding period in July 2013, latest data from the Reserve Bank of India on Thursday showed.

Credit to large industries grew only 1.8% y-o-y to R20,25,700 crore compared with a growth of 16.7% in the corresponding period last year.

Credit to micro and small industries too grew at a mere 2.3% to R3,543 crore compared with the growth of 20.3 % last year.

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Deceleration in credit growth was observed in

infrastructure, basic metals, textiles, chemicals and food processing industries, among others, the central bank noted.

Retail loans grew at a faster pace of 14.5% to R10,71,700 crore in July. However, retail loans recorded a growth of 17% last year.

The consumer durables loan segment grew the fastest in the retail segment and increased 10% to R14,100 crore while credit to home loans was also muted and recorded a growth of 6.1% to R5,68,000 crore.

Non-food credit in July 2014 showed some improvement and grew by 12.6% compared with an increase of 14.8% in July 2013. In FY14, credit growth had reached a year high of 18.4% in September 2013, following the RBI’s extraordinary liquidity tightening measures in July.

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