Banks' non-food credit growth slows to 9% in May

Non-food credit growth of scheduled commercial banks slowed to 9 per cent in May compared with an increase of 13 per cent in the same month last year, according to a Reserve Bank data.
Credit to agriculture and allied activities rose by 11 per cent as against 16.8 per cent expansion a year ago, RBI's data on sectoral deployment of bank credit for May showed.
The data is collected on a monthly basis from select 46 scheduled commercial banks, accounting for about 95 per cent of the total non-food credit deployed by all such banks.
Credit to industry rose by 5.2 per cent compared with a rise of 11.3 per cent last year. "Deceleration in credit growth to industry was observed in all major sub-sectors barring gems and jewellery," RBI said.

Advances to the services sector were up by 9.1 per cent in May as against an increase of 13.1 per cent last year. Loans to NBFCs increased by 5.6 per cent compared with an increase of 20.2 per cent.
Personal loans shot up by 16.6 per cent, slightly up from 14.8 per cent growth in May 2014, the data showed.