Non-food credit growth slows to 6.8% in May

MUMBAI: The non-food credit growth decelerated to 6.8 per cent year-on-year in May from 11.4 per cent in the same period of last year, RBI data showed.

The outstanding incremental non-food credit stood at Rs 90.3 lakh crore as of May 22, 2020, as against Rs 84.51 lakh crore on May 24, 2019.

In April, non-food credit growth decelerated to 7.3 per cent on a year-on-year basis from 11.9 per cent in the same month last year.


Bank loan growth to industry decelerated to 1.7 per cent in May from 6.4 per cent in the same month last year.

“Within industry, credit growth to beverage and tobacco, petroleum, coal products and nuclear fuels, and paper and paper products accelerated,” according to the RBI's release on Sectoral Deployment of Bank Credit – May 2020.

However, credit growth to chemicals and chemical products construction, infrastructure, food processing, textiles, and all engineering decelerated/contracted.

Credit growth to agriculture and allied activities decelerated to 3.5 per cent during the reporting month from 7.8 per cent in May 2019, as per RBI data.

Loans growth to the services sector slowed down to 11.2 per cent from 14.8 per cent in the same month of last year.

Personal loans growth decelerated to 10.6 per cent in May 2020 from 16.9 per cent in May 2019, RBI said.