Banks' non-food credit increased by 3,5 per cent in January: RBI

Non-food bank credit increased by 3.5 per cent in January 2017 compared with an increase of 9.8 per cent in January 2016, RBI data on sectoral deployment of bank credit of all scheduled commercial banks showed.

Credit to agriculture and allied activities increased by 8.1 per cent in January 2017 compared with an increase of 13.4 per cent in January 2016, according to data released by the Reserve Bank of India (RBI).

Credit to industry contracted by 5.1 per cent in January 2017 in contrast with an increase of 5.6 per cent in January 2016. Credit growth to major sub-sectors such as 'infrastructure', 'food processing', 'basic metal and metal products' and 'textiles' witnessed deceleration/contraction.

However, credit growth to 'petroleum, coal products and nuclear fuels', 'vehicles' and 'construction' accelerated.

Credit to the service sector increased by 8.1 per cent in January 2017 compared with an increase of 8.9 per cent in January 2016.

Personal loans increased by 12.9 per cent in January 2017 compared with an increase of 18.1 per cent in January 2016.

The figures are based on data on sectoral deployment of bank credit collected on a monthly basis from select 46 scheduled commercial banks, accounting for about 95 per cent of the total non-food credit deployed by all scheduled commercial banks.

Credit growth decelerates amidst deposit boom

Meanwhile, aggregate deposits of all scheduled commercial banks for the quarter ended 31 December 2016 grew at an accelerated pace in all population groups (except in metropolitan areas) and for all bank groups.

On the other hand, bank credit decelerated across all population groups and bank groups, RBI data showed.

Term deposits constituted the highest share in aggregate deposits in all population groups, except in rural areas where savings deposits (53.4 per cent) recorded the major share.

Metropolitan bank branches continued to contribute the largest share of aggregate deposits (51.6 per cent) and total bank credit (65.6 per cent).

Public sector banks continued to lead, accounting for 70.6 per cent of aggregate deposits and 66.2 per cent of total bank credit.

The survey revealed a concentration of deposits and credit in seven states, namely, Maharashtra, National Capital Territory (NCT) of Delhi, Tamil Nadu, Karnataka, Uttar Pradesh, West Bengal and Gujarat.

The credit-deposit (C-D) ratio of all SCBs at all-India level came down to 70.6 per cent by end-December 2016 from 74.5 per cent a quarter ago, with Maharashtra (106.5 per cent), Tamil Nadu (100.8 per cent), Chandigarh (100.0 per cent), Telangana (96.7 per cent), Andhra Pradesh (91.4 per cent) and NCT of Delhi (84.5 per cent) recording C-D ratios above the all-India average.

The data include regional rural banks (RRBs). The survey covers all types of deposits and total credit classified by states, districts, centres, population groups and bank groups.