Bank credit to manufacturing companies grew 7.3% y-o-y in November, a sharp drop from 13.7% a year ago, RBI data showed on Wednesday.
The overall non-food credit grew 11% y-o-y in November.
Banks had disbursed Rs 25,45,200 crore to the manufacturing companies by November end, RBI data showed. Credit growth to companies engaged in services also slowed sharply to 9.9% y-o-y in November compared with 18.1% a year ago.
Within industries, there was a sharp fall in credit to fertiliser companies indicating no incremental credit offtake. Bank loans to fertiliser companies fell 14% to Rs 22,200 crore. However, loans to petrochemical manufacturers increased 4.1% to Rs 40,100 crore.
The growth in non-food credit has largely stemmed from a healthy growth in the retail sector. Loans towards purchases of vehicles, consumer durables and credit card advances grew at double digits. Within retail, loans to buy consumer durables grew by 46.8% while home loans grew at 16.4% y-o-y – at a slower pace than 18.1% in the previous year.