Personal loans are half of incremental bank lending
riven by housing loans, personal loans account for over a half of total non-food credit expansion of Rs 3.22 trillion in the first nine months of the ongoing fiscal; farm sector credit accounted for a little less a fourth, services around 14 per cent and industry a lesser 12 per cent. Incremental home loans have outpaced credit growth in farm, industry and services sectors. Among the services, bank credit to professional services has increased by Rs 128 billion and retail trade by Rs132 billion, even as credit to wholesalers shows a decline over the period. Bank credit to commercial real estate increased by Rs 58 billion (Rs 94 billion). Large industry sector has pocketed the incremental industry credit as medium & small sectors have witnessed erosion in bank credit over the period. Bank credit to infra sectors grew Rs 460 billion, retarding from Rs 589 billion in the similar period a year ago; bank credit to power sector grew less, whereas lending to roads and other infrastructures grew faster. Among the other industries, bank credit to iron & steel was up Rs 150 billion, but the same to food processing companies was down Rs 226 billion and petroleum, coal product companies Rs 84 billion.
On an annual basis, total gross non-food credit by scheduled commercial banks went up 9.3 per cent by 25 December 2015,slowing from 9.7 per cent a year-ago, according to data compiled by RBI from select scheduled commercial banks, which account for about 95 per cent of the total non-food credit deployed by all scheduled commercial banks. Personal loans increased 16 per cent, against 15.3 per cent a year ago, on the back of strong growth in housing loans. Bank credit growth to services sector improved from 6.6 per cent to 9.2 per cent. Export credit has declined 21 per cent annually.
GROSS NON-FOOD CREDIT: 25 DECEMBER
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