Bank credit expanded at a slow 15.4 per cent in December
31 Jan 2012
Bank credit to various sectors of the economy (except food credit) grew 15.4 per cent in December 2011 – the lowest pace so far in the current financial year - against 27.2 per cent in December 2010.
Credit offtake across almost all sectors, including agriculture, industry, services as also retail loans, showed a decline in December compared to the same month of 2010, data released by the Reserve Bank of India (RBI) showed.
Bank credit to agriculture expanded 5.6 per cent in December 2011, down from 25.4 per cent in the previous year period.
Credit to industry increased by 19.8 per cent in December 2011 against a 31.6 per cent growth in credit offtake reported in December 2010.
Infrastructure, metals and metal products, engineering, textiles, food processing, gems and jewellery, vehicles, vehicle parts and transport equipments, mining and quarrying and other industries such as electricity, gas and water supply accounted for much of the credit growth in December 2011.
Bank credit to the service sector increased 14.9 per cent in December 2011 as compared to the 29.5 per cent growth recorded in the previous year.
