Non-food credit growth slows to 6.7 pc in June

Advances to the services sector continued to grow at a robust, albeit decelerated, rate at 10.7 per cent in June 2020, compared to 13 per cent last year, it said. Credit to commercial real estate and computer software has bucked the downtrend, registering accelerated growth as against the same month previous year.

Non-food credit growth of banks slowed to 6.7 per cent in June, as against a growth of 11.1 per cent in the same month previous year, according to the Reserve Bank of India. The loan growth in June 2020 was nearly the same as in May.

Personal loans continued to perform well, registering a growth of 10.5 per cent in June 2020, almost similar to May 2020 but lower than 16.6 per cent growth in June 2019, RBI's Sectoral Deployment of Bank Credit for June 2020 showed. Vehicle loan registered an accelerated growth in June 2020 as against its level in the previous month and the corresponding period last year. Housing loans have also continued to perform well.

Credit growth to industry grew by 2.2 per cent in the month, as compared to 6.4 per cent growth in June 2019. Advances to large industries increased by 3.7 per cent in June 2020, over 7.6 per cent in the same period previous year. Within industry, credit growth to food processing, beverage & tobacco, petroleum, coal products & nuclear fuels, and paper & paper products accelerated in June, compared to the corresponding month a year ago.

Loan growth to infrastructure has also picked up in June vis-a-vis its level in the previous month, though it is much lower than in June 2019. "However, credit growth to chemicals & chemical products, cement & cement products, construction, gems & jewellery, glass & glassware and all engineering decelerated/contracted," the RBI said.

Credit growth to agriculture and allied activities increased by 2.4 per cent in June 2020 as compared to a higher growth of 8.7 per cent. Advances to the services sector continued to grow at a robust, albeit decelerated, rate at 10.7 per cent in June 2020, compared to 13 per cent last year, it said.

Credit to commercial real estate and computer software has bucked the downtrend, registering accelerated growth as against the same month previous year. Loans to NBFCs have also continued to grow at a healthy pace, it showed.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)