Credit to industry shrank 1.7%, personal loans slowed in October: RBI

Credit to large companies contracted 2.9%, but that to medium enterprises grew 16.7% YoY. Overall credit to industry had grown at 3.4% in October 2019

Year-to-year, credit to industry contracted by 1.7 per cent in October, and personal loan growth decelerated, as banks tightened their purses for large industries even as medium industries witnessed robust credit growth.  

Credit to large industries contracted 2.9 per cent, but credit to medium enterprises registered year-on-year growth of 16.7 per cent. The credit to the industry segment had grown at 3.4 per cent in October 2019.  

Credit growth to agriculture and allied activities accelerated to 7.4 per cent in October 2020 from 7.1 per cent in October 2019. 

 

Personal loans grew at 9.3 per cent, compared with 17.2 per cent in October 2019.  

“Within this sector, vehicle loans continued to perform well, registering accelerated growth of 8.4 per cent in October 2020 vis-a-vis a growth of 5.0 per cent in October 2019," the RBI said in a statement.  

Credit growth to the services sector accelerated to 9.5 per cent in October 2020 from 6.5 per cent in October 2019. Within this sector, credit to ‘professional services’, ‘computer software’ and ‘trade’ registered accelerated growth in October 2020 vis-à-vis the growth in the corresponding month of the previous year, it said.  

Overall, on a year-on-year basis, non-food bank credit growth decelerated to 5.6 per cent in October 2020 from 8.3 per cent a year ago.