Gross bank credit moderates to 14.8% in May 2013: RBI

Gross bank credit moderates to 14.8% in May 2013: RBI

Statistics released by the Reserve Bank of India on overall credit growth in May this year reveal that growth rate was lower on a year-on-year basis, even as personal loans posted higher growth as compared to credit card outstanding balances.

Gross bank credit comprising food and non-food segments grew at 14.8 per cent y-o-y in May 2013 in comparison to 17.4 per cent in May last year.

Industrial lending witnessed moderation, from 19.4 per cent last May to 15.5 per cent this year, while credit to services sector declined marginally to 14.6 per cent, from 15.8 per cent in May last year.Sectors that saw sharp decline in credit offtake included mining and petrochemicals that showed contraction, and sugar, metals excluding steel, electronics and vehicles. Sectors that bucked the trend were fertilisers, leather, cement and iron and steel. 

Lending to commercial real estate and retail grew 14 per cent and 27.8 per cent in May 2013 respectively. The corresponding figures in May 2012 for these two sectors were 11.8 per cent and 12.3 per cent.Another segment that saw a sharp decline was non-banking finance companies (NBFCs). Credit to this segment grew 2.8 per cent this May as against 35.6 per cent last May.

The segment that bucked the trend was personal loans that saw growth of 16.3 per cent in May 2013 compared to 13 per cent in May 2012.

Simultaneously, outstanding balances in credit cards rose 9.6 per cent, it was 12.8 per cent in May 2012. Education loans and other personal loans witnessed muted growth, according to the RBI data on sectoral deployment of credit collected from 47 scheduled commercial banks (SCBs) representing 95 per cent of total non-food credit by all SCBs.

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