The Reserve Bank of India (RBI) today said that credit growth is now becoming increasingly broad-based across sectors and industries.
"Disaggregated data suggest that credit growth, which was earlier driven by the infrastructure sector, is becoming increasingly broad-based across sectors and industries, evidencing growth momentum and demand pressures," the apex bank said in its third-quarter review of its monetary policy for FY11.
Credit flow to the services sector increased significantly for transport operators, tourism, hotel and restaurant and commercial real estate, besides retail housing and personal loans, it said.
Within industry, apart from infrastructure, increase in credit was significant for metals, engineering, textiles, food processing and chemical and chemical products.
According to the Reserve Bank, the total flow of financial resources (rough estimates) from banks and non-banks to the commercial sector during April-December 2010 stood at Rs 9,01,000 crore, up from Rs 6,36,000 crore during the year-ago period.
It said that there was a surge in bank credit to the commercial sector but fund-flow from other sources was lower than last year's level.
This was mainly on account of lower net inflows from foreign direct investment (FDI), it said.