Latest News | Credit Growth to Industry Decelerates to 5.2 Pc in July: RBI

Mumbai, Aug 31 (PTI) Growth in bank credit to industry slowed down to 5.2 per cent annually in July 2023 while lending to the agriculture sector showed an improvement, the RBI said on Thursday.

The Reserve Bank released data on sectoral deployment of bank credit for July 2023 collected from 40 select banks, accounting for about 93 per cent of the total non-food credit deployed by all commercial banks.

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On a year-on-year (y-o-y) basis, non-food bank credit registered a growth of 14.8 per cent in July 2023 as compared with 15.1 per cent a year ago.

"Credit to industry registered a growth of 5.2 per cent (y-o-y) in July 2023 as compared with 10.5 per cent in July 2022," it said.

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It also said that credit growth to agriculture and allied activities improved to 16.8 per cent (y-o-y) in July 2023 from 13.2 per cent a year ago.

Among major industries, credit growth (y-o-y) to ‘basic metal & metal products' and ‘textiles' accelerated in July 2023 as compared with the corresponding month of the previous year.

On the other hand, the growth in credit growth to ‘chemicals & chemical products', ‘food processing' and ‘infrastructure' decelerated/contracted.

According to the data, loan growth to services sector accelerated to 19.4 per cent (y-o-y) in July 2023 from 16.7 per cent a year ago, primarily due to ‘trade' and ‘commercial real estate'.

Personal loans registered a growth of 18.4 per cent (y-o-y) in July 2023 (18.7 per cent a year ago), supported by ‘housing' and ‘vehicle' loans, the RBI said.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)