Non-food bank credit growth decelerated to 5.8% in September


Mumbai: Non-food bank credit growth decelerated to 5.8 per cent in September 2020 from 8.1 per cent in the same month of the previous year, according to the RBI data. “Credit to industry recorded ‘nil’ growth in September 2020 as compared with 2.7 per cent growth in September 2019,” the data on Sectoral Deployment of Bank Credit – September 2020, released by the Reserve Bank of India showed.

Within industry, credit to food processing, petroleum, coal products & nuclear fuels, leather & leather products, wood & wood products, and paper & paper products registered accelerated growth in September 2020 as compared with the growth in the corresponding month of the previous year.

However, credit growth to beverage & tobacco, construction, infrastructure, rubber plastic & their products, chemical & chemical products, glass & glassware and all engineering decelerated or contracted, RBI data said.

Credit to agriculture and allied activities rose by 5.9 per cent during the reporting month as compared with a growth of 7 per cent in the same month of the last year.

“Bucking the downtrend, credit growth to the services sector accelerated to 9.1 per cent in September 2020 from 7.3 per cent in September 2019,” it said.

Within this sector, credit to computer software, trade and tourism, hotels & restaurants registered accelerated growth in September 2020 vis-a-vis the growth in the corresponding month of the previous year.

Personal loans registered a growth of 9.2 per cent in the month as compared with 16.6 per cent growth in September 2019. Within this sector, vehicle loans continued to perform well, registering accelerated growth in September 2020 vis-a-vis the growth in the corresponding month of the previous year, the data showed.

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