Non-food credit up 7.4% up to Oct 4

MUMBAI: Showing signs of growth in the industrial sector, the non-food credit by banks grew by 7.4 per cent up to October 4, 2002 compared to 5.2 per cent in same period last year, according to the mid-term review of monetary and credit policy of the Reserve Bank of India.

Food credit in absolute terms declined by Rs 800 crore in contrast to an increase of Rs 10,200 crore in the same period last year on account of lower procurement and higher off-take of foodgrains, RBI announced here on Tuesday.

Various business expectation surveys point to a positive industrial outlook, but impact of the deficient south-west monsoon would have to be taken into account before taking a final view, it said.

The feedback on credit flows from banks for April-August 2002 reveals that there was a discernible increase in credit to coal, iron & steel, cotton & other textiles, tea, tobacco & tobacco products, pulp and paper, the apex bank said.

On the other hand, decline in credit was observed in mining, other metal & metal products, all engineering, electricity, sugar, vegetable oils & vanaspati, food processing, petrochemicals, it said.