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Rediff News  All News  » Business » Banks' credit growth to industry slows in January: RBI

Banks' credit growth to industry slows in January: RBI

March 12, 2013 16:50 IST

Indian banks' credit to industry grew at a sluggish pace in January compared with year ago, data from the Reserve Bank of India (RBI) showed on Tuesday.

Credit to industry increased by 15.2 percent in January, slower than the 20.2 percent increase in the year-ago period, the RBI said in a statement.

However, credit to sectors such as chemicals, coal products and nuclear fuels, wood and leather grew faster than a year ago, the statement said.

Overall, non-food credit grew 14.6 in January, slower than 15.9 percent a year ago.

Banks' credit to the agriculture sector increased by 19.8 percent in January, up from 6.3 percent a year ago, it said.

Credit to the services sector increased by 12.0 percent in January, up from 15.1

percent a year ago.

So far this fiscal, banks' advances grew around 11.1 percent, compared with 11.8 percent a year earlier, while deposit growth was around 11 percent compared with 11.8 percent a year ago, provisional data from the RBI showed.

The central bank has projected deposit growth at 15 percent and credit growth at 16 percent for the financial year that ends this month.

Banks have shied away from aggressive lending due to concerns over asset quality and a rise in non-performing assets, while an overall slowdown in the economy has hurt demand.

The Indian economy has lost momentum in recent years and is expected to grow at 5 percent, the lowest in a decade.

Neha Dasgupta in Mumbai
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