Non-food credit offtake from banks by major sectors recorded a growth of 18.4% in October this year, suggesting the impact of the high interest rate regime in the economy.
The annual growth in non-food interest was 20.8% in the same month last year.
While the farm sector, services and industry reported lower credit growth offtake in October as compared to the same month in 2010, it was higher in case of personal loans, as per the latest data released by the Reserve Bank of India (RBI).
"On a year-on-year basis, non-food bank credit increased by 18.2% in October 2011 as compared with 20.8% in the previous year," the RBI said.
According to experts, the prevailing high interest rate regime has affected credit growth by making borrowings expensive.
The total non-food credit disbursement stood at Rs 38.38 lakh crore in October, up from Rs 32.46 lakh crore in the same month of the previous fiscal.
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As per the data, the total credit disbursement to agriculture and allied areas grew by only 7.1% at Rs 4.35 lakh crore in October.
"Credit to industry increased by 23.1% year-on-year in October 2011 as compared with 24.8% in the previous year...," the RBI said.
The total credit disbursement to industry -- which includes infrastructure, metals, food processing, rubber, plastic and their products and engineering -- was Rs 17.56 lakh crore in October.
"Credit to the services sector increased by 18.2% year-on-year in October 2011, lower than 21.5% in the previous year," the RBI said.
The sector saw bank credit offtake rise to Rs 9.27 lakh crore in October this year.
Within services, while segments like transport, computer software, tourism and wholesale trade witnessed slower growth in the offtake of credit during the month, disbursements to non-banking financial companies saw a big jump.
"Credit growth to NBFCs on a year-on-year basis in October 2011 at 41.5% was significantly higher than 26.1% in the previous year," the apex bank said.
Bank credit disbursement to the NBFC segment stood at Rs 1.85 lakh crore in October this year.
On the other hand, the silver lining was credit extended to the personal loan sector which registered a growth of 14.5% during October, 2011, compared to a growth of 12% during the same month a year ago.
During the month under review, total credit offtake by the sector stood at Rs 7.16 lakh crore.