Non-food credit by major banks declined Rs 417 billion or 7.2 per cent during April (between 20 March and 29 April), the first month of the current fiscal, according to detailed provisional data released by RBI in respect of major select banks that account for 95 per cent of total non-food credit by banks. Outstanding loans to chemicals companies also fell Rs72 billon and food processing Rs 34 billion, which contributed to Rs 691 billion decline in credit to industry and brought down the total incremental credit by banks to only Rs46 billion for the month. Among the other sectors, credit to professional services expanded Rs 165 billion (15.8 per cent), over 44 per cent increase during FY 16. Credit to NBFCS increased Rs 126 billion; housing loans and credit card loans under personal loans were up Rs 114 billion and Rs 33 billion, respectively.  Credit to agriculture increased 204 billion, over a similar increase in April a year ago.

On an annual basis, total non-food credit increased 8.4 per cent by April end, slowing from 8.9 per cent a year ago. Credit to industry stagnated at year ago level, following declines in micro, small and medium sectors. In infra sectors, loans to power sector declined 4.8 per cent but the same to roads sector expanded 5.2 per cent. The personal loans increased 19.7 per cent: housing loans grew 18.1 per cent and vehicle loans 19.7 per cent. Credit to agriculture was up 15.3 per cent and services 11 per cent. Loans to professional services shot up 44 per cent, loans to NBFCs increased 13 per cent and retail trade 15 per cent.

Gross Non-food Credit: 29 April
`billion  YoY increase (%)
2014 2015 2016 2015/2014 2016/2015
Agriculture & Allied Activities 6865 7835 9033 14.1 15.3
Industry (Micro & Small, Medium and Large ) 25098 26582 26615 5.9 0.1
Of which, infrastructure 8431 9326 9190 10.6 -1.5
Power 4886 5652 5382 15.7 -4.8
Roads 1596 1669 1756 4.6 5.2
Services 13344 14221 15766 6.6 10.9
Personal Loans 10176 11775 14101 15.7 19.7
Of which, Housing (Including Priority Sector Housing) 5482 6419 7582 17.1 18.1
Vehicle Loans 1983 1265 1515 -36.2 19.7
Total non-food credit 55483 60414 65515 8.9 8.4
Priority Sector 18493 20192 22462 9.2 11.2

 


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