Credit growth slows to 12.6 pc in July
Aug 31 2014 , Mumbai
Increase in non-food credit was a tad lower than the 13% growth in the previous two months, according to the Reserve Bank data.
Last July, non-food credit had increased 14.8%. Bank credit to the agriculture sector rose 19.5% to Rs 7,20,200 crore during the month from Rs 6,02,700 crore in the corresponding period last year. In July 2013, credit to the sector had risen 10.5%.
Bank lending to the industry was much lower at 10.1% to Rs 25,07,900 crore from Rs 22,77,400 crore in the year ago period. Last July, the increase in credit to industry was 15.9%.
"Deceleration in credit growth was observed in infrastructure, basic metals, textiles, chemicals and food processing industries, among others," the RBI said.
Services sector saw an increase of 12.3% 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 sector had seen an increase of 13.3% in credit from banks.
During the month credit to NBFCs more than doubled to 11.5% from 5.7% in the year ago period. Personal loans growth inched down to 14.5% from 17% in the corresponding period last year.
Meanwhile, the RBI's quarterly data on deposits and credit growth showed that growth rates in aggregate deposits and gross bank credit decelerated to 13.9% and 13.8%, respectively in March 2014 from 14.2% and 15.1% recorded a year ago.
"The deceleration in gross bank credit was observed across all population groups whereas deceleration in aggregate deposits was observed only in 'urban' centres," the RBI said.
Public sector banks together contributed 74.1% share in aggregate deposits and 73.3% share in gross bank credit followed by private sector banks at 18.7% and 19.4%, respectively as of March 2014.
The credit-deposit ratio of all commercial banks stood at 78% as of March 2014 with the numbers for public sector at 77.1%, and that of private sector bank and foreign banks at 80.9%, 87.4%, respectively.