Gross Bank Credit grows at about 6% in October 2017

 

 

Gross bank credit grows at around 6% in October 2017 as against 4.2% in September 2017. The gross bank credit growth stands at 6.4% during October 2016. On a year-on-year (y-o-y) basis, non-food bank credit increased by 6.6% in October 2017 as against 6.1% in September 2017. Credit to agriculture and allied activities increased by 5.5% in October 2017 as compared to 5.8% in September 2017.

 

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

   Source: PHD Research Bureau, compiled from RBI

 

Credit to industry contracted by 0.2% in October 2017 as compared with contraction of 0.4% in September 2017. Credit to industry contracted by 0.2% in October 2017 as compared with contraction of 1.7% last year. Credit growth to major sub-sectors such as infrastructure, basic metal & metal products, vehicles, vehicle parts & transport equipment and cement & cement products have contracted. However, credit growth to textiles, chemical & chemical products, all engineering and food processing have accelerated.

 

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

Sector

September

2017*

October 2017**

September

2017^

Y-O-Y growth

October

2017^^

Y-O-Y growth

(%)

(%)

Gross Bank Credit

72068

70996

4.2

5.9

   Food Credit

398

412

-75.3

-49.5

   Non-food Credit

71671

70584

6.1

6.6

Agriculture & Allied Activities

9971

9810

5.8

5.5

Industry (Micro & Small, Medium and Large)

26404

25991

-0.4

-0.2

Services

17749

17336

7.0

9.4

Personal Loans

17547

17447

16.8

16.0

Priority Sector

24266

23792

3.7

3.5

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