The Reserve Bank of India (RBI) has reported that credit to industry increased at 17.7 per cent to Rs 20,85,300 crore in November 2012, lower than the growth of 20.9 per cent to Rs 17,71,200 crore in November 2011. However, the credit growth in November was in line with central bank's projections of 17 per cent growth for 2012-13 and bankers are expecting to achieve this credit growth mark in January-March quarter as banks have started lending to non-banking finance companies.
On a year-on-year (y-o-y) basis, non-food bank credit increased by 17.6 per cent in November 2012 as compared with the increase of 16.8 per cent in same period last year. However, RBI said that credit growth to industry declined in all sub-sectors except food processing, coal products, nuclear fuels, chemical and chemical products, paper and paper products, petroleum, barring mining and quarrying, wood and wood products, cement and cement products and all engineering. However, credit to the services sector increased by 15.3 per cent in November 2012 as compared with the increase of 17.2 per cent in November 2011.
Further RBI added that medium-sized units recorded only 3 per cent credit growth in November 2012 as against 28.7 per cent in November 2011 and credit in home loan increased by 13.2 per cent in November 2012 to Rs 4,37,200 crore as against the growth of 13.8 per cent to Rs 3,86,100 crore in the same period of previous year. Personal loans increased by 16.3 per cent in November 2012 as compared with the increase of 13.3 per cent in November 2011.
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