Credit growth to industry slows: RBI

RBI

Credit to industry increased at a slower pace at 17.7 per cent to Rs 20,85,300 crore in November, 2012 as compared with the increase of 20.9 per cent to Rs 17,71,200 crore in November 2011, the Reserve Bank of India (RBI) said.

"Deceleration in credit growth to industry was observed in all the major sub-sectors, barring mining and quarrying, food processing, wood and wood products, paper and paper products, petroleum, coal products and nuclear fuels, chemical and chemical products, cement and cement products and all engineering," the RBI said.

Credit to medium-sized units showed just 3 per cent growth in November 2012 as against 28.7 per cent in November 2011.

Home loan outstandings increased by 13.2 per cent in November 2012 to Rs 4,37,200 crore as against a growth of 13.8 per cent to Rs 3,86,100 crore in the same period of last year.

Despite the rising non-performing assets, non-food bank credit increased by 17.6 per cent in November 2012 as compared with the increase of 16.8 per cent in the year-ago period.

While the central bank had projected 17 per cent credit growth for 2012-13, bankers are confident of achieving this growth mark in January-March quarter.

"The banking sector will attain the RBI's credit growth projection towards the end of the financial year. Banks have just started lending to non-banking finance companies and branded real estate developers. Infrastructure sector is also adding some momentum due to previous sanctions. However, we are very cautious about manufacturing sector," said a banker.

Bank loans to NBFCs rose 30.3 per cent on a y-o-y basis to Rs 2,43,900 crore by November 2012 as against Rs 1,87,200 crore in the same period of last year. Credit to agriculture increased by 24.4 per cent in November 2012, up from 7.3 per cent in November 2011.

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