Home >News >India >Credit growth decelerates to 6.7% in June

Mumbai: The non-food credit in the banking system grew at 6.7% in June 2020, nearly the same levels seen in May 2020. It was however lower than the growth of 11.1% seen in June last year.

According to the Reserve Bank of India’s (RBI) latest sectoral data, total non-food credit outstandings amounted to 9047014 crore as of June 2020.

While most of the sectors — including agriculture, industry, services— showed a slowdown in credit growth, consumer durables, computer software and tourism & hotels saw a jump in credit growth on a year on year basis.

According to RBI’s data, growth to agriculture and allied activities declined to 2.4% compared to 8.7% during the same period last year.

Credit growth to industry decelerated down to 2.2% at the end of June 2020 compared to 6.4% during the same period last year. Within industry, loan offtake growth by the large industry segment declined to 3.7% at 2426844 crore from 7.6% a year ago.

The data further said credit growth to the services sector decelerated to 10.7% ( 2528489 crore) in June 2020 from 13% last January. Within services, credit growth to computer software increased to 12.5% at the end of June 2020 compared to 0.1% a year ago. Credit growth to tourism, hotels and restaurants also increased to 16.8% at the end of June 2020 as against 8.2% a year ago

Personal loans too grew by 10.5% in June 2020, slower than 16.6% during the same period last year. Credit card outstandings fell by over 10,000 crore to 97586 crore, showing a growth of 2.8% as against 27.5% a year ago.

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