Non-food bank credit rose by 13.4 per cent year on year in October as compared to a growth of 6.6 per cent in the year-ago month, according to RBI data. During the month, advances to industry rose by 3.7 per cent as against a contraction of 0.2 per cent in October last year.
"Credit growth to infrastructure, all engineering, chemical and chemical products and food processing accelerated," RBI said in a release today. However, credit to basic metal and metal products, cement and cement products, gems and jewellery and paper and paper products contracted.
Loans to agriculture and allied activities rose by 8 per cent as compared with an increase of 5.5 per cent in October 2017.
Credit to the services sector expanded by 27.4 per cent during the reporting month as compared with 9.4 per cent in October 2017. Personal loans increased by 16.8 per cent in October 2018 as compared with 16 per cent in October 2017.
(With inputs from agencies.)