Credit growth fell to 8.6% in FY15

Well down from FY14 and across sectors and segments; export credit shrank 11.9%, loans to individuals kept 15.4-15.5% pace

Reflecting an economic slowdown in the country, the pace of growth in bank credit slowed sharply to 8.6 per cent in 2014-15 from 14.3 per cent in 2013-14.

Credit to exporters contracted 11.9 per cent to Rs 42,600 crore, the Reserve Bank of India (RBI) said. Gross bank credit in March was Rs 614,230 crore, up from Rs 56,57,200 crore a year before.

Credit to industry rose 5.6 per cent in FY15, down from an increase of 13.1 per cent in FY14. The deceleration was across sub-sectors, with the exception being construction. Loans to construction units and business establishments rose 19.9 per cent, up from 17.7 per cent in FY14. Credit to the services sector grew 5.6 per cent, compared to a rise of 16.1 per cent in 2013-14. All major sub-sectors showed the deceleration.

Advances to agriculture and allied activities rose 15 per cent as compared with a 13.5 per cent increase in 2013-14.

The pace of sourcing of loans by non-banking finance companies from banks declined to 6.4 per cent in 2014-15 from 13.2 per cent a year before. Personal loans — consumer credit, housing and so forth — increased by 15.4 per cent in FY15 as against 15.5 per cent in FY14, RBI added.