Non-food credit growth in the fortnight ending 27 September slowed to as low as 8.7% year-on-year to ₹97.11 trillion, central bank data showed.
During the comparable fortnight a year ago, non-food credit—or loans to individuals and companies—was up 12.6% to ₹89.3 trillion. The banking system had last registered a single-digit growth of 9.9% in total non-food credit in the fortnight ending 8 December 2017.
Deposits growth slowed to 9.38% to ₹129.06 trillion for the fortnight ending 27 September from 10.02% in the preceding fortnight.
While credit growth to agriculture and personal loans remained broadly unchanged in the last one year, credit growth to industry moderated in the last four months, after accelerating continuously between August 2018 and April 2019.
Advances to industry more than doubled to 3.9% in August 2019 from 1.9% in August 2018. Credit growth to services, on the other hand, decelerated sharply since January 2019. Of the incremental non-food credit flow during the year (August 2019 over August 2018), personal loans accounted for the largest share, followed by services and industry.
Within personal loans, credit offtake has been broadly concentrated in two segments—housing and credit card outstanding. The RBI’s report also showed that the slowdown in credit growth was led by public sector banks and private sector banks.
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