Non-food credit growth of banks stood at 5.9 percent in December 2020 as compared to 7 percent in the same month of the previous year, RBI data showed.
During the reporting month, growth in credit to agriculture and allied activities accelerated to 9.4 percent from 5.3 percent in December 2019, the data on sectoral deployment of bank credit for December 2020, released by Reserve Bank of India (RBI), showed.
Loans to industry contracted by 1.2 percent as compared with 1.6 percent growth, mainly due to contraction in credit to large industries by 2.4 percent as compared with 1.8 percent growth a year ago.
Credit to medium industries registered a robust growth of 15.3 percent as compared to 2.5 percent a year ago; and credit to micro and small industries registered an accelerated growth of 1.2 percent in the reporting month as compared to 0.1 percent a year ago, the data showed.
Within industry, credit to food processing, gems and jewellery, petroleum, coal products and nuclear fuels, leather and leather products, paper and paper products, mining and quarrying, glass and glassware and wood and wood products registered accelerated growth in December 2020 as compared to the growth in the corresponding month of the previous year.
However, credit growth to rubber plastic and their products, cement and cement products, all engineering, beverages and tobacco, infrastructure, basic metal and metal products and construction decelerated/contracted, RBI said.
Personal loans registered a decelerated growth of 9.5 percent in the reporting month as compared with 15.9 percent growth in December 2019. Vehicle loans continued to perform well registering an accelerated growth of 7.8 percent in December 2020 as compared to 7.2 percent a year ago.Growth in advances to the services sector accelerated to 8.8 percent in December 2020 from 6.2 percent in December 2019 mainly on the back of acceleration in credit growth to transport operators and trade, the data showed.