MUMBAI : Bank credit growth accelerated sharply in July. Non-food credit rose 19.1% year-on-year, almost double the 9.9% recorded in the same period last year, according to the latest Reserve Bank data.
The figures cover the fortnight ended 31 July and are based on 41 scheduled commercial banks that account for about 95% of total non-food credit. Outstanding non-food bank credit stood at ₹219.60 lakh crore.
Industry led the surge. Credit to the sector grew 20%, up from 6.5% a year earlier. Both large and medium industries borrowed more, while lending to micro and small units also remained strong. Infrastructure, basic metals, engineering, chemicals, petroleum and textiles all recorded buoyant growth.
Services expanded even faster. Credit to the sector rose 22.9%, compared with 10.2% last year. Non-banking financial companies, trade and commercial real estate accounted for much of the increase.
Agriculture and allied activities grew 17%, against 7.3% a year earlier. Personal loans rose 16.2% from 11.9%, with housing and vehicle loans continuing to post double-digit growth. Credit-card lending and loans against gold jewellery slowed.
The broad-based rise comes after the economy expanded 7.8% in the April -June quarter. Private investment grew 11.9% and gross fixed capital formation climbed to 34.3% of GDP from 31.4% a year earlier.
Gold loans, however, have lost some momentum. While outstanding loans against gold jewellery continued to rise, the pace has moderated enough.
