Bank credit growth to industry decelerates to 6.1% in Nov: RBI data

Among major industries, year-on-year credit growth to basic metal & metal products, food processing and textiles accelerated in Nov 2023 as compared with the corresponding month of the previous year

Growth of bank credit to industry decelerated to 6.1 per cent in November as against 13 per cent recorded in the same month last year, according to data released by the Reserve Bank of India (RBI) on Friday.

Among major industries, year-on-year credit growth to basic metal & metal products, food processing and textiles accelerated in November 2023 as compared with the corresponding month of the previous year, while that to all engineering, chemicals & chemical products, and infrastructure decelerated.

On the other hand, credit growth to agriculture and allied activities accelerated to 18.2 per cent in November from 14 per cent a year ago.

According to the data on "Sectoral Deployment of Bank Credit -- November 2023", personal loan growth decelerated to 18.6 per cent (y-o-y) in November (19.9 per cent a year ago), due to moderation in credit growth to housing.

Credit to the services sector grew 21.9 per cent in November as against 21.3 per cent a year ago. Credit growth to non-banking financial companies tapered down during the month.

The RBI said the data has been collected from 41 scheduled commercial banks, accounting for about 95 per cent of the total non-food credit deployed by all banks.

Non-food bank credit registered a growth of 16.3 per cent in November as compared with 17.6 per cent a year ago, the RBI added.