Bank Credit Growth to Industry Decelerates to 6.1% In November: RBI Data

Growth of bank credit to industry decelerated to 6.1% in November as against 13% recorded in the same month last year, according to data released by the Reserve Bank of India on Friday.

Among major industries, year-on-year credit growth to basic metal & metal products, food processing and textiles accelerated in November 2023 as compared with the corresponding month of the previous year, while that to all engineering, chemicals & chemical products, and infrastructure decelerated.

On the other hand, credit growth to agriculture and allied activities accelerated to 18.2% in November from 14% a year ago.

According to the data on 'Sectoral Deployment of Bank Credit -- November 2023', personal loan growth decelerated to 18.6% (y-o-y) in November (19.9% a year ago), due to moderation in credit growth to housing.

Credit to the services sector grew 21.9% in November as against 21.3% a year ago. Credit growth to non-banking financial companies tapered down during the month.

The RBI said the data has been collected from 41 scheduled commercial banks, accounting for about 95% of the total non-food credit deployed by all banks.

Non-food bank credit registered a growth of 16.3% in November as compared with 17.6% a year ago, the RBI added.