Non-food Credit

Credit to NBFCs grew by 11.9 per cent Y-o-Y in August 2024, down sharply from 21.3 per cent a year ago. Credit to trade declined to 15.5 per cent from 17.4 per cent in August 2023

Economists at India Ratings blamed the recent surge in interest rates

Loans to agriculture and allied activities continued to perform well, registering a growth of 9.9 per cent in the reporting month

Banks' non-food credit accelerated to 9.3 per cent in December from 6.6 per cent in the same period of the last year, according to the latest data from the RBI

The non-food credit bank credit grew at 6.2 per cent in July 2021, compared to 6.4 per cent growth a year ago, RBI data showed.

Non-food credit growth of banks slowed to 6.7 per cent in June, as against a growth of 11.1 per cent in the same month previous year, according to the Reserve Bank of India. The loan growth in June 2020 was nearly the same as in May. Personal loans continued to perform well, registering a growth of 10.5 per cent in June 2020, almost similar to May 2020 but lower than 16.6 per cent growth in June 2019, RBI's Sectoral Deployment of Bank Credit for June 2020 showed. Vehicle loan registered an accelerated growth in June 2020 as against its level in the previous month and the corresponding period last year. Housing loans have also continued to perform well. Credit growth to industry grew by 2.2 per cent in the month, as compared to 6.4 per cent growth in June 2019. Advances to large industries increased by 3.7 per cent in June 2020, over 7.6 per cent in the same period previous year. Within industry, credit growth to food processing, beverage & tobacco, petroleum, coal products & ..

Credit to agriculture and allied activities slowed down to 6.5 per cent in November 2019 from 7.7 per cent in November 2018, the RBI said

However, the busy season starting from the third quarter may show improvement in demand.

Credit to non-financial banking companies remains the fastest growing sector for deployment of bank credit, despite the liquidity crisis

The higher growth in advances comes at a point when 11 banks are under RBI's PCA framework, which restricts them from fresh lending

Non-food bank credit of schedule commercial banks rose 11.3 per cent to Rs 80.25 lakh crore in September 2018 as compared to an increase of 6.1 per cent in the same month last year, RBI data showed. Loans to agriculture and allied activities increased by 5.8 per cent in the reporting month, the same rate as in September 2017. Advances to the services sector expanded by 24 per cent as compared with 7 per cent in September 2017. Credit to industry rose by 2.3 per cent as against contraction of 0.4 per cent in September 2017, recent RBI data showed. Credit growth to infrastructure, textiles, chemical and chemical products and all engineering accelerated. "However, credit growth to basic metal & metal product, cement & cement products, gems & jewellery and paper & paper products contracted/decelerated," RBI said. Personal loans grew by 15.1 per cent in September 2018 as compared with 16.8 per cent in the year-ago month.

In the same period last year, non-food credit had grown by 8.5%