Gross Bank Credit grows at 12.2% in August 2018

20180922_162812

 


Gross bank credit grows at 12.2% in August 2018 as against 10.5% in July 2018. The gross bank credit growth stands at 4.8% in August 2017. On a year-on-year (y-o-y) basis, non-food bank credit increased by 12.4% in August 2018 as against 10.6% in July 2018. Credit to agriculture and allied activities increased by 6.6% in August 2018 and July 2018.  

 

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

Source: PHD Research Bureau, compiled from RBI

 

Credit to industry increased by 1.9% in August 2018 as against 0.3% in July 2018. Credit to industry increased by 1.9% in August 2018 as compared with a contraction of 0.3% in August 2017. Credit to major sub-sectors such as ‘infrastructure’, ‘textiles’, ‘chemical and chemical products’, ‘food processing’, ‘petroleum, coal products & nuclear fuels’ and ‘all engineering’ accelerated. However, credit to ‘basic metal & metal product’, ‘cement & cement products’ and ‘paper & paper products’ contracted/declined.

 

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

Sector

July 2018*

August 2018**

 July 2018^

Y-O-Y growth

August 2018^^

Y-O-Y growth

 

(%)

(%)

 Gross Bank Credit

76734

78191

10.5

12.2

 Food Credit

458

488

0.6

-10.0

 Non-food Credit

76276

77704

10.6

12.4

 Agriculture & Allied Activities

10385

10419

6.6

6.6

 Industry (Micro & Small, Medium and Large)

26371

26621

0.3

1.9

 Services

20075

20740

23.0

26.7

 Personal Loans

19445

19924

16.7

18.2

 Priority Sector

25324

25633

7.5

8.4

Source: PHD Research Bureau, compiled from RBI, * Data pertains to July 20, 2018.

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