Pace of non-food credit offtake slows further in Nov with 7.2% growth YoY

The pace of non-food credit offtake slowed further in November 2019 with year-on-year (YoY) growth of 7.2 per cent, reflecting protracted economic slump. 

The growth was 13.8 per cent in November 2018, according to Reserve Bank of India (RBI) data.  

Even sequentially, the pace of non-food credit offtake moderated from 8.26 per cent in October 2019. 

At the start of financial year 2019-20, credit expanded by 11.9 per cent in April 2019.

Agriculture, industry and the services segment saw credit expansion pace losing steam in November 2019. Only retail loans covering home, personal and credit cards held steady with double-digit growth. 

Credit to agriculture and allied activities slowed down to 6.5 per cent in November 2019 from 7.7 per cent in November 2018, the RBI said.

Credit growth to industry decelerated to 2.4 per cent in November 2019 from 4 per cent in November 2018. Within the industry, credit growth to ‘food processing’, ‘textiles’, ‘gems & jewellery’, products’, ‘infrastructure’ and ‘construction’ either decelerated or contracted. 

However, credit growth to ‘rubber, plastic & their product’ and ‘cement & cement products’ accelerated.

Credit growth to the services sector decelerated sharply to 4.8 per cent in November 2019 from 28.1 per cent in November 2018.

Personal loans grew at a marginally lower rate of 16.4 per cent in November 2019 compared to 17.2 per cent in November 2018.