Commercial banks' credit to the industry grew by 5.2 percent year-on-year in July, compared to a growth of 10.5 percent in the previous year, according to data from the Reserve Bank of India (RBI).
The data further indicates that credit growth to agriculture and allied activities improved to 16.8 percent year-on-year in July 2023, up from 13.2 percent a year ago.
The central bank collects data on the deployment of bank credit from 40 selected scheduled commercial banks (SCBs), which account for approximately 93 percent of the total non-food credit deployed by all SCBs.
According to the release, on a year-on-year basis, non-food bank credit saw a growth of 14.8 percent in July 2023, compared to 15.1 percent in the previous year.
The release further stated that among major industries, credit growth on a yearly basis for 'basic metal & metal products' and 'textiles' accelerated in July 2023 compared to the corresponding month of the previous year.
However, credit growth to 'chemicals & chemical products', 'food processing', and 'infrastructure' decelerated or contracted.
In the services segment, credit to aviation rose by 78.4 percent year-on-year to Rs 40,134 crore as of July 28, according to the data.
Similarly, personal loans registered a growth of 18.4 percent year-on-year in July, compared to 18.7 percent a year ago, supported by loans for 'housing' and 'vehicle' purchases.
Housing loans grew by 37.4 percent year-on-year to Rs 24.3 lakh crore as of July 28, while vehicle loans increased by 21.2 percent year-on-year to Rs 5.3 lakh crore.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
