Muted bank credit growth

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SummaryNon-food bank credit growth has decelerated to 14.3% year-on-year in December 2012 as compared with 17.6% in November last, data from the Reserve Bank of India’s sectoral deployment of credit for the month of December last year show.

Non-food bank credit growth has decelerated to 14.3% year-on-year in December 2012 as compared with 17.6% in November last, data from the Reserve Bank of India’s sectoral deployment of credit for the month of December last year show.

Industry sector loan growth was lower at 13.5% year-on-year in December 2012, as compared with 17.7% as of November last year. Large corporate segment loan growth decelerated to 16.1% year-on-year in December last year from 21.4% year-on-year in November. Even bank loan growth for small and medium enterprises was muted at 10.1% in December last year as compared with 9.7% year-on-year in November.

Bank loans to infrastructure (ex-telecom) decelerated to 18.5% year-on-year in December last year as compared with 22.1% in November last year and 26% in December 2011. Similarly, power sector loan growth was lower at 22.8% year-on-year in December last year as compared with 23.5% in November.

Even personal loan growth was lower at 13.7% in December last year as compared with 16.3% in November and mortgages grew by 12.4% year-on-year in December last year from 13.2% year-on-year in November. Bank lending for consumer durables declined by 36% year-on-year in December last year as compared with minus 7.8% in November last year, indicating the slowdown across all sectors.

Services sector loan growth was lower at 12.3% year-on-year in December last year as compared with 15.3% in November last year and 14.9% in December 2011. Lending to non-banking financial companies decelerated to 19.9% year-on-year in December last year as compared with 30.3% year-on-year in November.

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