The bank credit to NBFCs was negative after 44 months, data released by the Reserve Bank of India on Monday showed.
Bank credit to non-banking financial companies continued to decelerate despite the reversal of risk weights. As on May 30, it fell 0.3% year on year to Rs 15.63 lakh crore. Since February, when the risk weights were reversed, the bank credit to NBFCs have fallen by over 3%.
Overall, the credit to services moderated to 9.4% YoY as compared to 20.7% in the corresponding fortnight a year ago. The credit to housing finance companies and public financial institutions declined by 6.8% and 8.6%, respectively.
Credit to the personal loans segment slowed down to 13.7%, compared with 19.3% a year ago. This was mainly due to a moderation in growth of other personal loans, vehicle loans and credit card outstanding, the RBI said.
Bank loans to agriculture and allied activities grew 7.5%, compared with 21.6% in the corresponding fortnight of the previous year.
Loans to industry recorded a YoY growth of 4.9%, against 8.9% in the corresponding fortnight of the previous year. Among major industries, outstanding credit to engineering, construction and rubber, plastic and allied products recorded an accelerated yera-on year growth.
