Bank Credit Growth Surges in Key Sectors in July 2024: RBI Report

The Reserve Bank of India reported significant growth in bank credit to industry and agriculture in July 2024. Credit to major industries like chemicals, food processing, and infrastructure saw higher growth, while personal loan growth showed a slight decline. Data was gathered from 41 commercial banks.

The Reserve Bank of India (RBI) announced a substantial increase in bank credit to the industry, with a growth rate of 10.2% in July 2024, up from 4.6% in the corresponding month last year.

Agricultural and allied activities also saw robust growth, registering an 18.1% increase year-over-year in July 2024, compared to 16.7% a year earlier, according to the RBI's sectoral data.

Major industries such as chemicals, food processing, and infrastructure recorded higher growth rates in July 2024. However, credit to basic metals and textiles experienced a moderation. Meanwhile, credit growth to the services sector slowed to 15.4% from 19.7% last year, mainly due to reduced growth in non-banking financial companies and trade segments.

Areas like commercial real estate, tourism, and computer software saw accelerated growth in credit during July 2024. Although personal loan growth declined to 17.8% from 18.4% last year, housing loans - the largest segment - experienced accelerated growth.

The data was collected from 41 commercial banks, which represent approximately 95% of the total non-food credit deployed by all banks.