Growth in non-food bank credit stood at 5.9% in June, down from 6% in the period a year earlier, according to RBI data released on Friday.

Credit to agriculture and related activities continued to perform well, registering an accelerated growth of 11.4% in the base month, compared to 2.4% in the same month of the previous year, according to data from the RBI on the sectoral deployment of bank credit in June 2021.

Advances to industry contracted 0.3 percent in June after rising 2.2 percent in the same period a year ago.

In terms of size, credit to medium-sized industries recorded robust growth of 54.6% in June. There was a 9 percent contraction over the period last year.

Credit growth to micro and small industries accelerated to 6.4% in June, down from 2.9% a year ago. Credit to large industries contracted by 3.4% in June 2021. During the period of the previous year, there was a growth of 3.6%.

The growth of loans to the service sector slowed to 2.9% in the base month from 10.7% in June 2020, mainly due to the contraction / deceleration in the growth of credit to commercial real estate, NBFC and tourism, hotels and restaurants.

“However, the trade credit segment continued to perform well, registering accelerated growth of 11.1% in June 2021 from 8.1% a year ago,” the data showed.

Personal loans saw accelerated growth of 11.9% in June 2021 from 10.4% a year ago, mainly due to accelerated growth in loans against gold jewelry and auto loans, according to bank data. central.

(Only the title and image of this report may have been reworked by Business Standard staff; the rest of the content is automatically generated from a syndicated feed.)

Dear reader,

Business Standard has always strived to provide up-to-date information and commentary on developments that matter to you and have broader political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering has only strengthened our resolve and commitment to these ideals. Even in these difficult times resulting from Covid-19, we remain committed to keeping you informed and updated with credible news, authoritative views and cutting edge commentary on relevant current issues.
However, we have a demand.

As we fight the economic impact of the pandemic, we need your support even more so that we can continue to provide you with more quality content. Our subscription model has received an encouraging response from many of you who have subscribed to our online content. More subscriptions to our online content can only help us achieve the goals of providing you with even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practice the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital editor

Leave a Reply

Your email address will not be published.