Gross Bank Credit grows at 5% in August 2017

 

Gross bank credit grows at 5% in August 2017 as compared to 4.7% in July 2017. The gross bank credit growth stands at 7.6% during August 2016. On a year-on-year (y-o-y) basis, non-food bank credit increased by 5.5% in August 2017 as against 5.3% in July 2017. Credit to agriculture and allied activities increased by 6.5% in August 2017 as against 6.8% in July 2017.

 

 Monthly trend in growth of gross bank credit (%)                                                                                                              (YoY)

   Source: PHD Research Bureau, compiled from RBI

 

Credit to industry contacted by (-)0.3% in August 2017 as well as in July 2017. Credit to industry growth stood at (-) 0.2% in August 2016. Credit growth to major sub-sectors such as infrastructure, basic metal & metal products, textiles contracted. However, credit growth to construction, chemical & chemical products, gems & jewellery accelerated.

 

Deployment of Gross Bank Credit by major sectors                                                                                                     (Rs. Billion)

Sector

July

2017*

August 2017**

July

2017^

Y-O-Y growth

August

2017^^

Y-O-Y growth

(%)

(%)

Gross Bank Credit

69452

69599

4.7

5.0

   Food Credit

456

482

-42.6

-37.5

   Non-food Credit

68996

69117

5.3

5.5

Agriculture & Allied Activities

9743

9777

6.8

6.5

Industry (Micro & Small, Medium and Large)

26280

26112

-0.3

-0.3

Services

16316

16375

4.9

5.0

Personal Loans

16657

16854

15.0

15.7

Priority Sector

23547

23642

3.3

4.4

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