Bank credit rises 14.7% in Feb

In February, growth in bank credit slowed to 14.7 per cent from 15.4 per cent a year earlier, showed Reserve Bank of India data.

Credit to industry increased by 13.2 per cent in February as compared with the increase of 17.4 per cent in February 2013. Deceleration in credit growth was observed in mining and quarrying, beverages and tobacco, textiles, wood and wood products petroleum and coal products, chemical and chemical products, cement and cement products, basic metals, vehicles, gems and jewellery and infrastructure.

While credit to agriculture and allied activities increased by 13.1 per cent in February as compared with the increase of 15.9 per cent in February 2013.

However, growth in reatil loans continued to be healthy. It increased by 16.5 per cent in February as compared with the increase of 14.6 per cent in February 2013.

Similarly, there was growth seen in credit to the services sector which increased by 17.1 per cent in February compared with the increase of 12 per cent in February 2013. While credit to Non Banking Financial Companies (NBFCs) increased by 14.7 per cent in February compared with the increase of 10.8 per cent a year ago.