Latest News | Non-food Credit Growth Moderates to 6.7% in July

Mumbai, Aug 31 (PTI) Non-food bank credit grew 6.7 per cent year-on-year in July as against a growth of 11.4 per cent in the same month of the last year, RBI data showed.

Bank credit in July stood at Rs 91.48 lakh crore, as per the data.

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Growth in loans to industry slowed to 0.8 per cent in July as compared with 6.1 per cent growth in July 2019, according to the data on sectoral deployment of bank credit for July 2020, released by the Reserve Bank on Monday.

Advances to agriculture and allied activities registered a growth of 5.4 per cent in the reporting month as compared with a growth of 6.8 per cent last year in the same period.

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Credit to the services sector continued to grow at a robust, albeit decelerated, rate of 10.1 per cent in July 2020 as against 15.2 per cent growth.

Within this sector, credit to computer software and tourism, hotels & restaurants bucked the downtrend, registering accelerated growth in July 2020 vis-a-vis the growth in the corresponding month of the previous year, the data showed.

Personal loans continued to perform well registering a growth of 11.2 per cent as compared with 17 per cent growth in July 2019. Within this sector, vehicle loans registered accelerated growth of 8.1 per cent in July 2020 as compared with the growth of 4.9 per cent in the corresponding month of the previous year, according to the data.

The central bank also released data on deposits and advances of scheduled commercial banks for the June 2020 quarter.

Bank credit growth moderated to 6.4 per cent while deposits growth accelerated to 11.5 per cent in the quarter ended June 2020, the RBI data showed.

Growth in bank credit was 11.7 per cent and deposits at 10.1 per cent in the corresponding month of the previous year.

During the period, rural branches of banks continued to record double digit credit growth, it showed.

The deceleration in credit growth occurred across bank groups -- credit growth (y-o-y) for private sector banks moderated to 7.2 per cent in June 2020 from 17.5 per cent a year ago but it remained higher than that for public sector banks at 5.7 per cent.

The all-India credit-deposit (C-D) ratio declined to 73.1 per cent in June 2020 from 76 per cent in the previous quarter, as per the RBI data.

(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)