Services sector loan growth slowed to 1.2% in April 2021 from 10.6% in April 2020
Recent data from the RBI revealed that non-food bank credit grew by 5.7% in April 2021, compared to 6.7% in the month a year earlier.
Growth in advances to agriculture and related activities accelerated to 11.3% in April 2021 from 4.7% growth in April 2020, according to Bank Credit Sector Deployment Data – April 2021, released Monday by the Reserve Bank of India. , show.
Industrial credit growth slowed to 0.4% in April 2021 from 1.7% in April 2020.
However, credit to medium industries recorded robust growth of 43.8% in April 2021, compared to a contraction of 6.4% a year ago, the data showed.
Growth in loans to micro and small industries accelerated to 3.8% in April this year from a contraction of 2.2% a year ago, while credit to large industries contracted of 1.9% against growth of 2.7% per year. one year ago.
Within industry, food processing credit; textiles; precious stones and jewelry; paper and paper products; glass and glassware; Infrastructure; leather and leather products; and wood and wood products recorded accelerated growth in April 2021 compared to the corresponding month of the previous year, according to data from the RBI.
However, the growth of credit to mines and quarries; beverages and tobacco; petroleum, coal products and nuclear fuels; rubber, plastic and their products; vehicles; vehicle parts and transport equipment; base metals and metal products; cement and cement products; all engineering, chemicals and chemicals; and construction slowed down.
Growth in loans to the services sector slowed to 1.2% in April 2021 from 10.6% in April 2020, mainly due to slower credit growth to NBFCs and a marginal contraction in credit to transport operators , according to the data.
However, the trade credit segment continued to perform well, recording accelerated growth of 10.5% in April 2021, compared to 8.7% a year ago.
Data showed that personal loans recorded accelerated growth of 12.6% in April 2021 from 12.3% a year ago, mainly due to accelerated growth in auto loans, loans against gold jewelry and outstanding credit cards.
