Sharp fall in credit growth to agriculture, services sectors

Non-food bank credit increased by 6.1 per cent in September 2017

Mumbai: Credit growth to the agriculture and services segments has seen a fall in the last 12 months. The Reserve Bank of India on Tuesday said credit to agriculture and allied activities increased by 5.8 per cent in September 2017, lower than the increase of 15.9 per cent in September 2016.

Credit to the services sector increased by 7.0 per cent in September 2017, down from the increase of 18.4 per cent in September 2016. On a year-on-year (y-o-y) basis, total non-food bank credit increased by 6.1 per cent in September 2017 as compared with an increase of 10.8 per cent in September 2016, the RBI said.

“Credit to industry contracted by 0.4 per cent in September 2017 as compared with an increase of 0.9 per cent in September 2016,” the RBI said. Credit growth to major sub-sectors such as infrastructure, all engineering and vehicles, vehicle parts & transport equipment’ contracted.

However, credit growth to basic metal & metal products, textiles and food processing increased. Personal loans increased by 16.8 per cent in September 2017 against the increase of 19.7 per cent in September 2016, it said.

Source: The Indian Express

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