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Source: Reserve Bank of India

Data on sectoral deployment of bank credit collected from select 33 scheduled commercial banks, accounting for about 90 per cent of the total non-food credit deployed by all scheduled commercial banks, for the month of November 2020 are set out in Statements I and II.

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

  • On a year-on-year (y-o-y) basis, non-food bank credit growth stood at 6.0 per cent in November 2020 as compared to 7.2 per cent in November 2019.

  • Reversing the downtrend, credit growth to agriculture and allied activities accelerated to 8.5 per cent in November 2020 from 6.5 per cent in November 2019.

  • Credit to industry contracted marginally by 0.7 per cent in November 2020 as compared with 2.4 per cent growth in November 2019 mainly due to contraction in credit to large industries by 1.8 per cent in November 2020 (3.0 per cent growth a year ago), though credit to medium industries registered a robust growth of 20.9 per cent in November 2020 vis-a-vis contraction of 2.4 per cent a year ago.

  • Within industry, credit to ‘food processing’, ‘petroleum, coal products & nuclear fuels’, ‘leather & leather products’, ‘paper & paper products’, ‘mining & quarrying’, ‘glass & glassware’, ‘textile’, ‘beverages & tobacco’ and ‘vehicles, vehicle parts & transport equipment’ registered accelerated growth in November 2020 as compared with the growth in the corresponding month of the previous year. However, credit growth to ‘rubber plastic & their products’, ‘cement & cement products’, ‘all engineering’, ‘gems & jewellery’, ‘infrastructure’, ‘basic metal & metal products’ and ‘construction’ decelerated/contracted.

  • Credit growth to the services sector accelerated to 8.8 per cent in November 2020 from 4.8 per cent in November 2019 mainly on the back of acceleration in credit growth to ‘transport operators’ and ‘trade’ within the services sector.

  • Personal loans registered a growth of 10.0 per cent in November 2020 as compared with 16.4 per cent growth in November 2019. Within this sector, vehicle loans continued to perform well, registering an accelerated growth of 10.0 per cent in November 2020 vis-a-vis a growth of 4.7 per cent in November 2019.

Ajit Prasad
Director   

Press Release: 2020-2021/865

MIL OSI Global Banks