The Reserve Bank of India (RBI) on Monday said that non-food bank credit increased 5 per cent in April on a year-on-year (y-o-y) basis, compared with an increase of 8.6 per cent in April 2016. Non-food bank credit growth had declined to a historic low of 3.3 per cent in February 2017 — the lowest in several decades — as compared with an increase of 9.9 per cent in February 2016. The RBI said credit to agriculture and allied activities increased by eight per cent in April 2017, lower than increase of 15 per cent in April 2016.
“Credit to industry contracted by one per cent in April 2017 in contrast with an increase of 0.3 per cent in April 2016. Credit growth to major sub-sectors such as infrastructure, food processing, basic metal & metal products and textiles decelerated/contracted. However, credit growth to petroleum, coal products & nuclear fuels, rubber, plastic & their products, vehicles, vehicle parts & transport equipment and gems & jewellery accelerated,” it said.
According to the RBI, credit to the services sector increased 4.8 per cent in April 2017, lower than the increase of 11 per cent in April 2016. Personal loans rose 14.8 per cent in April 2017, lower than the increase of 19.9 per cent in April 2016, it said.