Banks’ non-food credit rose by 12.6 percent y-o-y in the month of July to Rs 56,17,500 crore from Rs 49,89,400 crore in the year-ago period. However, the growth in non-food credit was a tad lower than average 13 percent growth in the previous two months.
The Reserve Bank of India (RBI) report highlighted that bank credit to the agriculture sector rose by 19.5 percent to Rs 7,20,200 crore during the month from Rs 6,02,700 crore in the corresponding period last year. Credit to the sector had risen around 10.5 percent in July 2013. Banks’ lending to the industry grew by 10.1 percent to Rs 25,07,900 crore in July from Rs 22,77,400 crore in July 2013. The report noted that growth in industry’s credit was lower than 15.9 percent in the July 2013 mainly due to decline in credit to infrastructure, basic metals, textiles, chemicals and food processing industries, among others.
Meanwhile, services sector witnessed an increase of 12.3 percent in the lending at Rs 13,17,600 crore in July as against Rs 11,73,700 crore last year same period. In July last year, the service sector had seen an increase of 13.3 per cent in credit. Banks’ credit to NBFCs more than doubled to 11.5 percent in July from 5.7 per cent in the year ago period. Further, personal loans growth declined to 14.5 per cent from 17 percent in the corresponding period last year.
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