Industry credit grows for first time this year in November

Personal loans increased 17.3% in November against an increase of 15.2% a year ago

Credit to industry grew one per cent for the first time this year in November, reflecting an increased demand due to busy economic activity in the second half of the year. This is against a contraction of 3.4 per cent in the year-ago period, according to the Reserve Bank of India data.

This was led by 0.8 per cent growth of large enterprises, 4.6 per cent growth of micro and small enterprises, and a slowdown of contraction to 8.3 per cent for mid-sized entities.
 

“Credit to major sub-sectors such as infrastructure, vehicles, vehicle parts and transport equipment, basic metal and metal products and mining and quarrying has declined. However, credit growth to textiles, chemical and chemical products, engineering, food processing and construction has accelerated,” the central bank said.

Total non-food bank credit increased 8.8 per cent in November 2017 to Rs 71 lakh crore from an increase of 4.8 per cent in November 2016. 

Personal loans increased 17.3 per cent in November against an increase of 15.2 per cent a year ago. Housing (including priority sector housing) credit grew 13.1 per cent against 15.6 per cent in November last year. 

Credit to the services sector increased 14 per cent, up from 7.1 per cent in November 2016, while that to agriculture and allied activities increased 8.4 per cent. Overall credit to the priority sector grew 7.1 per cent. This was against an agricultural credit growth of 10.3 per cent and priority sector growth of 5.8 per cent in November 2016.