Non-food bank credit growth slows to 7.6% in March

Non-food bank credit growth slows to 7.6% in March

Non-food bank credit growth slowed to 7.6 per cent in March this year as compared to an increase of 12.3 per cent in the year-ago month, due to a sharp decline in advances given by banks to industries and the services sector, according to the RBI data.

Banks' non-food credit stood at Rs 92.85 lakh crore in March 2020 as against Rs 86.33 lakh crore a year ago.

In February this year, non-food bank credit growth had decelerated to 7.3 per cent in February 2020 from 13.2 per cent in the year-ago month.

Loan growth to the services sector decelerated sharply to 8.5 per cent in March 2020 from 17.8 per cent in March 2019.

Credit growth to non-banking financial companies (NBFCs) slowed to 27.7 per cent from 29.2 per cent in March 2019, the RBI data showed.

Growth in advances to industry decelerated to 1.4 per cent in March 2020 from a rise of 6.9 per cent in March 2019, the data showed.

Within the industry, credit growth to beverage and tobacco, mining and quarrying, petroleum, coal product and nuclear fuels, cement and cement products and vehicles, vehicle parts and transport equipment accelerated.

However, credit growth to chemical and chemical products, all engineering, glass and glassware, gems and jewellery and infrastructure decelerated or contracted.

Growth in advances to agriculture and allied activities decelerated to 5.2 per cent in March 2020 from 7.9 per cent in March 2019.

Personal loans growth fell marginally to 15.7 per cent in March 2020 from 16.4 per cent in March 2019, the data showed.