Total gross non-food credit of scheduled commercial banks has gone up by Rs.3.3 billion during H1 (till September 20) of the current fiscal, which is three times the incremental credit during the corresponding period of fiscal 2013. In terms of percentage, it increased by 6.8 per cent (2.4 per cent).

Total outstanding bank credit was provisionally assessed at Rs.52 trillion on September 21, rising from Rs.48.7 trillion in March last and Rs.44 trillion a year ago, according to data compiled by RBI from select 47 scheduled commercial banks accounting for about 95 per cent of the total non-food credit deployed by all scheduled commercial banks.

GROSS NON-FOOD CREDIT
Sectors 
` Billion
% Increase April-September
 
21-Sep-12
22-Mar-13
20-Sep-13
2012-13
2013-14
Agriculture & Allied Activities
5,389
5,899
6,100
-1.6
3.4
Industry (Micro & Small, Medium and Large )
20,163
22,302
23,715
3.9
6.3
Of which, Infrastructure
6,585
7,297
7,943
4.4
8.8
Power
3,645
4,158
4,603
10.0
10.7
Roads
1,229
1,313
1,434
10.6
9.2
Services
10,279
11,486
12,553
0.9
9.3
Personal Loans
8,188
9,009
9,653
3.6
7.1
Of which, Housing (including Priority Sector Housing)
4,213
4,600
5,056
4.4
9.9
Vehicle Loans
964
1,111
1,186
8.1
6.8
Total non-food credit
44,020
48,696
52,020
2.4
6.8
Priority Sector
13,984
15,398
16,445
8.2
6.8

August-September seem to have recorded a marked pick-up in bank credit; thus, total outstanding credit which had remained at around Rs.49.9 trillion in June-July, increased to Rs.51 trillion in August and to Rs.52 trillion by September 20. Industry, services and personal loans accounted for most of the rise, even as farm sector loans seem to have stagnated in September, after speeding from 2.2 per cent till July to 3.4 per cent till August.

Bank credit to micro, small, medium and large industries was up 6.3 per cent, services 9.3 per cent, and agriculture and allied industries 3.4 per cent in H1. Bank credit to wholesale trade was up 2.9 per cent to Rs.1,545 billion, retail trade by 11.2 per cent to Rs.1,400 billion and commercial real estate by 7.7 per cent to Rs.1,358 billion. Personal loans grew 7.1 per cent, twice the year-ago rate. Housing loans expanded 9.9 per cent (4.4 per cent) and vehicle loans 6.8 per cent (8.1 per cent). Priority sectors like agriculture, housing and export credit increased 6.8 per cent.

Bank credit to infrastructure sectors, which include power, telecom, roads etc. increased 8.8 per cent, against 7.5 per cent till August and 4.4 per cent in H1 of fiscal 2013. Lending to power companies increased by 10.7 per cent, over 10 per cent in the corresponding period of 2012-13; loans for roads went up by 9.2 per cent, whereas the same to telecom companies declined 0.6 per cent during the period. Among the other industries, loans to basic metal and metal products expanded 7.2 per cent, engineering industries and chemicals and chemical products 7.6-7.7 per cent, food processing 3.5 per cent and textiles 2 per cent.


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