With signs of revival in the overall economy, credit flow to industry increased by 27 per cent year on year as of November 19, as against a growth rate of 14.2 per cent a year ago. The growth was mainly led by infrastructure, metals, engineering, textiles, food processing and chemical and chemical products.
According to the Reserve Bank of India (RBI), credit flow to industry during the financial year up to November grew by 11.7 per cent, compared with 9.4 per cent growth a year ago.
On a year-on-year basis, non-food gross bank credit grew by at 22.1 per cent in November 2010 as against 10.4 per cent growth in the corresponding period last year. During the financial year up to November 2010, non-food gross bank credit grew by 9.1 per cent as against 4.4 per cent during the corresponding period of the previous year.
Nov 19, ’10 (% chg)
|Non-food gross bank credit||22.10|
|Agriculture and allied activities||20.00|
|Industry (small, medium and large)||27.00|
|Advances against fixed deposit||19.60|
|Prefessional and other services||23.00|
|Source: RBI figures in Rs cr.|
All major sectors, barring agriculture, recorded accelerated credit growth in November 2010, both on year-on-year and financial year bases.
During the financial year up to November, credit flow to agriculture declined by 1 per cent as compared with an increase of 1.3 per cent in the year-ago period.
However, on an annual basis, it remained strong and grew by 20 per cent in November, compared with 21.4 per cent in the same month last year, RBI said.
Within the services sector, credit offtake by the real estate sector grew by 19.1 per cent annually in November as compared to 15.3 per cent in the same month last year. On a financial year basis, it grew by 14.5 per cent as against a decline of 4.2 per cent a year ago.
Personal loans saw a significant annual increase of 11.9 per cent in November as compared with 0.7 per cent a year ago, with loans to housing, vehicle loans picking up. On a financial year basis, the growth accelerated to 8.5 per cent as against a marginal increase of 0.9 per cent in the same period a year ago.
Advances to individuals against shares and bonds rose 25.1 per cent during the year.