Banks’ non-food credit growth moderated to 15.9% on a year-on-year (YoY) basis in February, from 16.7% in January, sectoral credit data released by the Reserve Bank of India on Friday showed.
As per the data, banks‘ non-food credit stood at Rs 134.1 trillion as on February 24. The growth was led by a rise in agriculture and industry loans, which stood at Rs 16.5 trillion and Rs 32.9 trillion, respectively.
“Credit to industry registered a growth of 7% YoY in February 2023, compared with 6.7% in February 2022. Size-wise, credit to large industry rose by 5%, compared with 0.9% a year ago. The credit growth of medium industries was 13.5% against 53.8% a year ago. Credit to micro and small industries registered a growth of 13.2% in February,” the RBI said.
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In the services industry, banks’ credit to NBFCs stood at Rs 13.09 trillion, up 32% on a yearly basis, while personal loans grew 20.4% to Rs 40.13 trillion.
The moderation in the overall credit growth is on expected lines , analysts said. According to a recent report by SBI Research, banks are likely to witness a 12%-13% YoY growth in their overall advances in FY24, compared with an estimated 15%-16% credit growth in FY23.