Credit flow to industry slackens to 15.2 % in January

The flow of bank credit to industry expanded at a slower pace of 15.2 per cent in January 2013 against an increase of 20.2 per cent in January 2012, data released by the Reserve Bank of India (RBI) showed.

The deceleration in credit flow to industry was observed across all major sub-sectors, barring chemicals and chemical products, petroleum, coal products and nuclear fuels, beverage and tobacco, leather and leather products, wood and wood products, rubber, plastic and their products and cement and cement products, RBI said.

Credit flows to the service sector increased by 12 per cent in January 2013 compared with the increase of 15.1 per cent in January 2012.

Credit to non-banking finance companies (NBFCs), however, increased by 21.6 per cent in January 2013, against an increase of 30.6 per cent in January 2012.

Personal loans increased by 13.5 per cent in January 2013 compared with the increase of 13.2 per cent in January 2012.

Overall, non-food credit grew 14.6 in January, slower than 15.9 per cent a year ago.