Non-food credit growth slows down in May

Credit pick up to farm, NBFC segment

Non-food bank credit of scheduled commercial banks increased by 13 per cent in May. The growth was slower compared to 15.3 per cent a year ago, according to Reserve Bank of India (RBI) data.

According to the data, sectors such as industry and services recorded a slower growth. While credit to industry expanded by 11.4 per cent in May vis-a-vis 15.9 per cent in the corresponding period last year, credit to the services sector also improved at a slower rate of 13.6 per cent compared to 14.5 per cent in the same period a year ago.

“Deceleration in credit growth to industry was observed in all the major sub-sectors, barring mining and quarrying, beverage and tobacco, petroleum, coal products and nuclear fuels, rubber, plastic and their products, glass and glassware, cement and cement products, vehicles and construction,” RBI said.

Even personal loan growth came in lower at 14 per cent in May compared to 17.1 per cent in the month of May a year ago.

On the other hand growth in the credit to agriculture sector improved, rising to 16.8 per cent from 11.7 per cent in May last year. Credit to NBFCs also recorded a sharp uptick, up to 19.7 per cent in May from 1.9 per in the corresponding period last year.