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The Reserve Bank of Indian (RBI) in its latest data has showed that credit growth in agriculture and allied activities improved to 16.6 per cent annually in August 2023, and the loan outstanding neared Rs 18 lakh crore. The credit growth in agriculture and allied activities was 13.4 per cent in August 2022.

The data also showed that credit to industry registered a growth of 6.1 per cent (year-on-year) in August 2023 compared to 11.4 per cent a year ago. Among major industries, credit growth (y-o-y) to basic metal and metal products and textiles accelerated in August 2023. However, the credit growth in chemicals and chemical products, food processing and infrastructure decelerated.

It further stated that the expansion in credit to services sector accelerated to 20.7 per cent (y-o-y) in August 2023 from 17.4 per cent a year ago, primarily due to non-banking financial companies (NBFCs) and commercial real estate. Personal loan growth decelerated to 18.3 per cent on an annual basis in August 2023 against 19.4 per cent a year ago due to moderation in credit to housing.