The growth of non-food bank credit accelerated to 6.9% in October 2021 from 5.2% in October 2020, according to data from the Reserve Bank of India on the sectoral deployment of bank credit.
The agricultural sector is experiencing accelerated growth
The growth in non-food bank credit has been propelled by credit to agriculture and related activities, industry and personal loans. The slowdown in the growth of credit to services continued.
The RBI observed that credit to agriculture and related activities continued to perform well, recording accelerated growth of 10.2% in October 2021 from 7.2% in October 2020.
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Credit growth to industry accelerated to 4.1% in October 2021, after contracting 0.7% in October 2020.
Credit to industries
Within the industry, credit to medium-sized industries recorded robust growth of 48.6% in October 2021 compared to 20.8% last year. Credit to micro and small industries accelerated to 11.9% in October 2021, down from 0.7% a year ago. Credit growth to major industries stood at 0.5% in October 2021, down from a contraction of 1.8% a year ago.
Credit growth in services slowed to 2.9. % in October 2021 compared to 8.6% a year ago.
Personal loans continued to grow at a sustained rate of 11.7% in October 2021 from 8.7% in October 2020, mainly due to mortgage, auto and gold jewelry loans.