Even as the pace of growth in non-food credit by scheduled commercial banks slowed a bit to 7.3 per cent by the end of November, as compared to 6.8 per cent during H1 and 2.5 per cent during Q1, the increase works out more relative to 6.2 per cent during the first eight months of the preceding fiscal 2012-13.

Bank credit to agriculture quickened the pace to 5.2 per cent from 3.4 per cent and personal loans to 9.7 per cent from 7.1 per cent during H1, but the growth rate in lending to industry almost remained unchanged at H1 rate and the same to services eased a bit to 8.1 per cent (9.3 per cent).

A half of the additional bank credit of Rs. 210 billion during October-November went to farm sector and bearing the impact of festivities, personal loans shot up Rs. 191 billion in terms of data compiled by RBI from select 47 scheduled commercial banks, which account for about 95 per cent of the total non-food credit deployed by all scheduled commercial banks.

Among the other sectors, loans to services sector declined Rs. 97 billion, while loans to industry showed subdued growth. Also, bank lending to priority sector, a memorandum item in credit profile shot up Rs. 698 billion; half of which went to micro and small enterprises; followed by weaker sections (Rs. 145 billion), agriculture (Rs. 106 billion) and housing (Rs. 36 billion).

On year-over-year basis, non-food credit increased 7.3 per cent till November 29 in the current fiscal, speeding from 6.2 per cent in the corresponding period of the preceding fiscal. While lending to services sectors accelerated from 3.1 per cent to 8.1 per cent, farm sector from 2.3 per cent to 5.2 per cent and personal loans from 9.2 per cent to 9.7 per cent, loans to industry slowed from 7.7 per cent to 6.4 per cent due to its subdued performance.

In services, loans for professional services, retail trade and commercial real estate shot up from 7.7 per cent, 8.7 per cent and 6.6 per cent to 17.4 per cent, 13.7 per cent and 13.5 per cent respectively. The growth rate in bank credit to infrastructure went down from 10.2 per cent to 8.9 per cent; lending to both power and road sectors slowed. In personal loans, housing loans speeded from 9.2 per cent to 12.1 per cent, whereas the same for vehicle purchases went down from 16 per cent o 11.7 per cent. Priority sector lending expanded 11.3 per cent (decline of 3 per cent).

GROSS NON-FOOD CREDIT
 
` Billion
% Increase April-November
 
November 30, 2012
March 22, 2013
November 29, 2013
2012-13
2013-14
Agriculture & Allied Activities
5,592
5,899
6,206
2.3
5.2
Industry (Micro & Small, Medium and Large )
20,869
22,302
23,723
7.7
6.4
Of which, infrastructure
6,943
7,297
7,946
10.2
8.9
Power
3,776
4,158
4,611
14.1
10.9
Roads
1,270
1,313
1,485
14.5
13.1
Services
10,546
11,519
12,456
3.1
8.1
Personal Loans
8,545
8,976
9,844
9.2
9.7
Of which, Housing (including Priority Sector Housing)
4,337
4,567
5,121
9.2
12.1
Vehicle Loans
1,033
1,111
1,240
16.0
11.7
Total non-food credit
45,552
48,696
52,230
6.2
7.3
Priority Sector
13,790
15,398
17,143
-3.0
11.3

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