Non Food Bank Credit Grows Nearly 7%

The RBI stated yesterday on a year-on-year (y-o-y) basis, non-food bank credit growth accelerated to 6.9 per cent in October 2021 as compared to 5.2 per cent in October 2020. Credit to agriculture and allied activities continued to perform well, registering an accelerated growth of 10.2 per cent in October 2021 as compared to 7.2 per cent in October 2020. Credit growth to industry picked up to 4.1 per cent in October 2021 from a contraction of 0.7 per cent in October 2020.

Size-wise, credit to medium industries registered a robust growth of 48.6 per cent in October 2021 as compared to 20.8 per cent last year. Credit to micro and small industries accelerated to 11.9 per cent in October 2021 from 0.7 per cent a year ago. Credit growth to large industries stood at 0.5 per cent in October 2021 as compared to a contraction of 1.8 per cent a year ago.

Slowdown in credit growth of services continued, as it decelerated to 2.9. per cent in October 2021 from 8.6 per cent a year ago. Personal loans continued to grow at a robust rate of 11.7 per cent in October 2021 vis-a-vis 8.7 per cent in October 2020 primarily due to 'housing', 'vehicle loans' and 'loans against gold jewellery'.

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