Banks' non-food credit growth slows 7.2% to Rs 86.73 trn in Nov: RBI

Non-food credit growth of banks slowed to 7.2 per cent to Rs 86.73 trillion in November, according to the latest data from the Reserve Bank of India.

The credit had grown 13.8 per cent to Rs 80.93 trillion in the corresponding month of the previous year.

Credit growth to industry fell to 2.4 per cent to Rs 27.72 trillion in November 2019 from 4 per cent in the corresponding month of 2018.

"Within industry, credit growth to food processing, textiles, gems & jewellery, chemicals & chemicals products, infrastructure and construction decelerated/contracted," the RBI said in a release on Tuesday.

However, credit growth to rubber, plastic and their products and cement and cement products accelerated during the month.

Loans to agriculture and allied activities slowed to 6.5 per cent in November 2019 from 7.7 per cent last year.

Advances to the services sector decelerated sharply to 4.8 per cent from 28.1 per cent last year.

Personal loans grew at a marginally lower rate of 16.4 per cent in November 2019 as compared with 17.2 per cent, the data showed.

Rating agency Icra in a recent report said credit expansion may plummet to a six-decade low of 6.5-7 per cent in 2019-20 compared to 13.3 per cent in the previous financial year.