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The deceleration in credit growth was observed in all major sectors for the month of June except for personal loans, according to Reserve Bank of India (RBI) data released on Monday.
On a year-on-year basis, personal loans increased by 15.6 per cent in June as compared with the increase of 13.9 per cent in June 2012.
Banks have been focusing a lot on retail loans in a scenario when corporate credit growth remains muted.
On a year-on-year (y-o-y) basis, non-food bank credit increased by 13.4 per cent in June as compared with the increase of 18.2 per cent in June 2012. The first half of the financial year is generally slow in terms of credit growth. This financial year however, a slowdown is also being attributed to economic growth coming down.
Credit to industry increased by 14.1 per cent in June as compared with the increase of 20.7 per cent in June 2012. Deceleration in credit growth to industry was observed in all major sub-sectors, barring food processing, textiles, leather & leather products, cement & cement products and infrastructure. Credit to agriculture increased by 9.9 per cent in June, as compared with the increase of 15.5 per cent in June 2012. Credit to the services sector increased by 12.1 per cent in June as compared with the increase of 18.6 per cent in June 2012.
The non-banking finance companies sector recorded a credit growth of 1.9 per cent in June as compared with the increase of 43.9 per cent in June 2012.
