The Reserve Bank of India (RBI) in its latest data has showed that bank credit jumped 12.44% to Rs 86,13,164 crore in the fortnight to July 20 as compared to Rs 76,59,898 crore same period last year. Growth in advances during the reporting period was marginally lower than the increase registered in the fortnight to July 6, when loans increased by 12.78% to Rs 86,60,069 crore.
As par the data, during the reporting fortnight, deposits rose 8.15% to Rs 1,14,38,121 crore from Rs 1,05,75,615 crore a year ago. Deposit the growth, the pace was slower than that in the last fortnight ended July 6, 2018, when they had risen 8.33% to Rs 1,14,85,768 crore.
In June 2018, the non-food bank credit rose 11.1% as against a rise of 4.8% in the same month last year. Loans to agriculture and allied activities slowed 6.5% in June, compared to an increase of 7.5% in June 2017. Personal loan segment saw a growth of 17.9% in June, up from an increase of 14.1% last June, while advances to the industry rose 0.9% compared to a contraction of 1.1% in June 2017.
Besides, the services sector witnessed a major increase in loans to the tune of 23.3% compared to an increase of 4.7% in June 2017. However, loans to basic metal and metal products, construction and gems and jewellery contracted in June 2018. The RBI highlighted that credit to major sub-sectors such as textiles, all engineering, food processing, chemical and chemical products, and cement and cement products accelerated.