Credit growth slows to 9.4 pc in February

The Reserve Bank today said slowdown in loan pick-up by corporates continued to compress credit growth, with non-food lending expansion falling below the double-digit mark to 9.4 per cent in February.
"On year-on-year basis, non-food bank credit rose just 9.4 per cent in February against increase of 14.7 per cent in February last year," the RBI said in data for sectoral deployment of credit, released today.
Credit growth to industry more than halved to 6 per cent from 13.2 per cent last February, it said.
The slowdown in credit growth was observed across all sectors barring beverages and tobacco and construction.

The credit growth reported by the services sectors was also lower in February at 7 per cent against 17.1 per cent last year, it said, adding the deceleration was observed across all sectors.
The credit to agriculture and allied activities increased 16.5 per cent, which was well over 13.1 per cent observed in February last year.

The banking system's lending to the non-bank lenders grew 7.1 percent in February, lower than 14.7 per cent last year.
Personal loans, considered as a riskier asset due to the absence of collaterals in many cases, seemed to be the only segment where credit growth is holding up to last year's expansion, with a 16 per cent growth in February against 16.5 per cent in the year-ago period.

The central bank said the data have been procured from 47 commercial banks and captures 95 per cent of the total non-food credit deployed.