Non-food credit offtake at 15.4 pc
Growth in non-food credit offtake from banks by major sectors slowed to 15.4 per cent in December, 2011, the lowest rate so far this fiscal, reflecting the impact of the high interest rate regime on the economy.
Credit growth in the non-food sector stood at 27.2 per cent in the same month of the previous year.
All segments, including farm sector, services, industry and personal loans, reported lower credit growth offtake in December as compared to the same month of 2010 as per the latest data released by the Reserve Bank of India (RBI).
“On a year-on-year basis, non-food bank credit increased by 15.4 per cent in December, 2011, as compared with 27.2 per cent in the same period of the previous year,” the RBI said. Total non-food credit disbursement stood at Rs 40.45 lakh crore in December, up from Rs 35.05 lakh crore in the same month of the previous fiscal.
As per the data, total credit disbursement to agriculture and allied areas grew by only 5.6 per cent to Rs 4.60 lakh crore in December. Credit offtake in this segment had risen as high as 25.4 per cent on an annual basis in December, 2010.
“Credit to industry increased by 19.8 per cent year-on-year in December, 2011, as compared with 31.6 per cent in the previous year...,” RBI said. Total credit disbursement to industry — which includes infrastructure, metals, food processing, rubber, plastic and their products and engineering — was Rs 18.58 lakh crore in December.
“Credit to services sector increased by 14.9 per cent year-on-year in December, 2011, lower than 29.5 per cent in the previous year,” RBI said. The sector saw bank credit offtake rise to Rs 9.84 lakh crore in December this year.
Within the services space, segments including transport, computer software, tourism and commercial real estate witnessed slower growth in credit offtake in December, while disbursements to retail trade went up marginally.
Even non-banking finance companies (NBFCs), which had reported high credit offtake for months, witnessed a slowdown. “Credit to NBFCs on a year-on-year basis increased by 36.2 per cent in December, 2011, as compared with 50.1 per cent in the previous year.”
Bank credit disbursement to the NBFC segment stood at Rs 2.10 lakh crore in December this year. “Personal loans increased by 12.3 per cent (year-on-year) in December, 2011, as compared with 16.7 per cent in the previous year.” During the month under review, total credit offtake by the sector stood at Rs 7.42 lakh crore.
Last fiscal, non-food credit offtake increased by 21.5 per cent, above RBI’s projection of 20 per cent. As per latest data, gross commercial bank credit, which also includes food credit, grew by 15.8 per cent in December on an annual basis, as against growth of 27.3 per cent in the same month of 2010.
This is on account of a massive 33.8 per cent jump in food credit offtake during the month under review. Food credit offtake stood at Rs 84,690 crore in December, 2011, compared to Rs 63,300 crore in December of the previous year.
