Bank credit growth accelerates across services, industry and agriculture in September: RBI

The growth was supported by strong lending to non-banking financial companies (NBFCs), infrastructure and other industries, while growth in loans against gold jewellery moderated compared with last year.

Overall, non-food bank credit grew by 19.1 per cent year-on-year as of September 30, compared with 11.2 per cent in the corresponding period last year.

According to the RBI's Sectoral Deployment of Bank Credit release, lending to the services sector increased by 28.3 per cent, compared with 9.9 per cent a year earlier.

"Credit to services sector registered a y-o-y growth of 28.3 per cent (9.9 per cent in the corresponding fortnight of the previous year)," the RBI stated.

The central bank attributed the growth to strong lending to NBFCs, trade, commercial real estate, transport operators and professional services.

Bank lending to industry rose by 19.5 per cent, compared with 7.7 per cent in the corresponding period last year.

"While credit to 'large' and 'medium' industries grew at an accelerated pace, 'micro and small' industries exhibited steady growth," the RBI said.

Among major industries, infrastructure, basic metals and metal products, engineering, chemicals, food processing and textiles recorded strong credit growth.

Credit to agriculture and allied activities increased by 19.5 per cent year-on-year, compared with 8.9 per cent in the corresponding period last year.

Meanwhile, personal loans grew by 17.3 per cent, against 11.5 per cent a year earlier.

The RBI said lending for housing and vehicle purchases remained resilient, while advances against fixed deposits accelerated.

However, growth in loans against gold jewellery and education loans slowed compared with last year, although it remained strong.

The sectoral credit data were collected from 41 scheduled commercial banks, accounting for about 95 per cent of total non-food credit extended by scheduled commercial banks. (ANI)