Hit by high interest rates, growth in commercial credit offtake from banks by major sectors slowed to 18.9 per cent in July, 2011, from 20 per cent in the same month last year.

While the farm sector and industry reported lower credit offtake in July, 2011, vis-a-vis the same month of 2010, year-on-year growth was higher in case of services and personal loans, as per the latest data released by the RBI.

Total outstanding non-food or commercial credit disbursement stood at Rs 37.28 lakh crore in July this year, up from Rs 31.35 lakh crore in the same month of the previous fiscal.

Commercial credit offtake of all the sectors combined was Rs 26.13 lakh crore in July, 2009.

"On a year-on-year basis, non-food gross bank credit increased by 18.9 per cent in July, 2011, as compared with 20 per cent in the corresponding period of last year," the RBI said.

The RBI had last month revised its non-food credit growth projection for this fiscal downward to 18 per cent from the earlier estimate of 19 per cent.

The decline in credit offtake is on account of the RBI's monetary tightening policy. The apex bank has raised its key policy rates 11 times since March, 2010, in a bid to tame inflation, which is currently above 9 per cent.

Gross bank credit, which also includes food credit, grew by 19.1 per cent in July on an annual basis, as against a growth of 19.8 per cent in the same month of 2010.

This is on account of a massive 31.9 per cent jump in food credit offtake during the month under review, as against a mere 9.2 per cent growth in July last year.

Food credit offtake stood at Rs 67,461 crore in July this year, compared to Rs 51,281 crore in July last year. Food credit offtake had stood at Rs 46,971 crore in June, 2009.

Last fiscal, non-food credit offtake increased by 21.5 per cent, much above the RBI's projection of 20 per cent.

As per the latest data, total credit disbursement to agriculture and allied areas grew by only 11.8 per cent in July, 2011, as against a growth of 19.9 per cent in the same month of 2010.

It was Rs 4.43 lakh crore in July, 2011, compared to Rs 3.96 lakh crore in July last year. In July, 2009, it stood a Rs 3.30 lakh crore.

"Credit to industry increased by 21.2 per cent (year-on- year) in July, 2011, as compared with 27.7 per cent in the previous year...," the RBI said.

On an annual basis, total credit disbursement to industry -- which includes infrastructure, metals, food processing, rubber, plastic and their products and engineering -- was Rs 16.79 lakh crore in July, compared to Rs 13.85 lakh crore in the same month last year. It stood at Rs 10.84 lakh crore in July, 2009.