Non-Food Credit Growth Slows To 4.8% In November: RBI

Mumbai: Non-food credit growth of commercial banks nearly halved to 4.8 per cent in November from 8.8 per cent in the corresponding period last year, data from the Reserve Bank of India showed.

This is also slower than in the previous month in October, when non-food bank credit rose 6.7 per cent against 8.3 per cent a year ago.

Loans to industry contracted by 3.4 per cent in the reporting month in contrast with an increase of 5 per cent in the year-ago month, the central bank said on Friday.

"Major sub-sectors which witnessed deceleration or contraction in credit include infrastructure, food processing, chemicals and chemical products, engineering, textiles and basic metals and metal products," stated the RBI data on sectoral deployment of bank credit for November.

The data on sectoral deployment of bank credit is collected on a monthly basis from select 46 banks, accounting for about 95 per cent of the total non-food credit deployed by all commercial banks.

Advances to agriculture and allied activities rose by 10.3 per cent in the month compared to an increase of 11.8 per cent last year. Services sector witnessed a 7.1 per cent increase in loans in the reporting month compared to an increase of 6.8 per cent last year, the data showed.

Personal loans rose 15.2 per cent in the month against an increase of 18 per cent in November 2015, the RBI said.