Non-food bank credit up 12.4% in Aug against 5.5% rise a year ago: RBI

Services sector loans expanded by 26.7% in Aug 2018, compared with 5% in Aug last year

 

Non-food credit of scheduled commercial banks rose by 12.4 per cent in August, against a rise of 5.5 per cent in the year-ago month, RBI data showed.

In the reporting month, loans to agriculture and allied activities increased by 6.6 per cent, compared with an increase of 6.5 per cent last year.

Personal loans were up by 18.2 per cent, against an increase of 15.7 per cent in August 2017, the data showed. 

Bank advances to industry rose by 1.9 per cent during the reporting month, compared with a contraction of 0.3 per cent last year same month.

"Credit to major sub-sectors such as infrastructure, textiles, chemical and chemical products and all engineering accelerated," the apex bank said in a release. 

However, credit to basic metal and metal product, cement and cement products, gems and jewellery and paper and paper products contracted in August 2018.

The services sector loans expanded by 26.7 per cent in August 2018, compared with that of 5 per cent in August last year.