6% growth in non-food bank credit in July

Data from the Reserve Bank of India demonstrated that non-food credit bank credit grew at 6.2% in July 2021, compared to 6.4% growth a year ago. It added that advances to agriculture and allied activities continued to perform well, registering an accelerated growth of 12.4% in the said period. It said, however, that growth in credit to industry remained subdued at 1% in July 2021 compared to 0.9% in the year-ago period. On the contrary, there was a steady growth of 71.6% in the credit to medium industries against a contraction of 1.8% a year ago.

The data also said that credit to micro and small industries accelerated to 7.9% in July 2021 against a contraction of 1.8% a year ago, while credit to large industries contracted by 2.9% from 1.4% growth a year ago. It added that personal loans registered an accelerated growth of 11.2% in July 2021, compared to 9% in the year-ago period, primarily due to higher growth in loans against gold jewellery and vehicle loans, the data showed.