Credit to industry shrinks 4.3% in December quarter

Credit had fallen in November by 3.4 per cent and in October by 1.7 per cent

Showing the effect of a slump in demand, bank loans to industry contracted in December, a third month in a row. 

According to Reserve Bank of India data, credit to small, medium and large units shrank 4.3 per cent in the 12 months ending December 2016. In the preceding 12 months (ended December 2015), credit to industry had expanded by 4.9 per cent.

Major segments that saw contraction in credit were food processing, infrastructure, chemical and chemical products, engineering, textiles and basic metal and metal products.

Credit had fallen in November by 3.4 per cent and in