Banks non-food credit growth slows to 5.3% in July
sMumbai: Non-food bank credit growth of schedule commercials banks slowed to 5.3% in July as compared with a rise of 8.3% in the same month last year, Reserve Bank of India (RBI) data showed.
Credit to agriculture and allied activities moderated to 6.8% in July 2017, lower than the increase of 13.4% in July last year. Personal loans rose by 15% in the month, lower than the increase of 18.8% in the year-ago period. Loans to industry contracted by 0.3% in contrast with an increase of 0.6% last year.
“Credit growth to major sub-sectors such as infrastructure, basic metal and metal products, textiles, petroleum, coal products and nuclear fuels and all engineering witnessed contraction/deceleration,” RBI said in a release on Thursday.
However, loan growth to construction, cement and cement products, rubber, plastic and their products and beverage and tobacco accelerated. Advances to the services sector increased slowed by 4.9% lower than the increase of 10.8% in July 2016, the data showed.