Banks’ non-food credit growth accelerates to 6.8% in September 2021: RBI data
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The Reserve Bank of India (RBI) in its latest data has showed that banks’ non-food credit growth accelerated to 6.8 per cent in September 2021 as against a rise of 5.1 per cent in the same period of last year. Loans to agriculture and allied activities registered a higher growth of 9.9 per cent in September 2021 as compared to 6.2 per cent in the year-ago period.
Data further showed that credit growth to industry picked up to 2.5 per cent in September 2021 from 0.4 per cent in September 2020. Size-wise, credit to medium industries registered a robust growth of 49 per cent in September 2021 as compared to 17.5 per cent last year. Credit to micro and small industries accelerated to 9.7 per cent in September 2021 from a contraction of 0.1 per cent a year ago.
Besides, it showed advances to large industries continued to contract at one per cent in September 2021 as compared to a contraction of 0.2 per cent a year ago. Credit growth to the services sector decelerated to 0.8 per cent in September 2021 from 9.2 per cent in September 2020, mainly due to contraction in loan growth to NBFCs, trade and commercial real estate. Personal loans registered an accelerated growth of 12.1 per cent in September 2021 as compared to 8.4 per cent a year ago, primarily due to faster credit growth in housing, vehicle loans, and loans against gold jewellery.
