Credit to services sector grew by 21% Y/y

Personal loans growth decelerated to 18%

FinTech BizNews Service 

Mumbai, 31 October, 2023:  Data on sectoral deployment of bank credit for the month of September 20231 collected from 40 select scheduled commercial banks, accounting for about 93 per cent of the total non-food credit deployed by all scheduled commercial banks, is published by the RBI today. On a year-on-year (y-o-y) basis, non-food bank credit2 registered a growth of 15.3 per cent in September 20233 as compared with 16.9 per cent a year ago.

Highlights of the sectoral deployment of bank credit3 are given below:

• Credit growth to agriculture and allied activities improved to 16.8 per cent (y-o-y) in September 2023 from 13.4 per cent a year ago.
• Credit to industry grew by 6.5 per cent (y-o-y) in September 2023 as compared with 12.6 per cent in September 2022. Among major industries, credit growth (y-o-y) to ‘basic metal & metal products’, ‘food processing’ and ‘textiles’ accelerated in September 2023 as compared with the corresponding month of the previous year, while that to ‘all engineering’, ‘chemicals & chemical products’ and ‘infrastructure’ decelerated.
• Credit to services sector grew by 21.3 per cent (y-o-y) in September 2023 from 20.2 per cent a year ago with ‘non-banking financial companies (NBFCs)’ and ‘trade’ being the major contributors.
•  Personal loans growth decelerated to 18.2 per cent (y-o-y) in September 2023 (19.4 per cent a year ago), due to moderation in credit growth to housing.