Non-Food Credit Growth Moderates To 6.7% In July, RBI Data Shows
Trucks stand parked at the Okhla APMC wholesale market in New Delhi, India. (Photographer: Prashanth Vishwanathan/Bloomberg)

Non-Food Credit Growth Moderates To 6.7% In July, RBI Data Shows

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Non-food bank credit grew 6.7% year-on-year in July as against a growth of 11.4% in the same month of the last year, Reserve Bank of India data showed.

Bank credit in July stood at Rs 91.48 lakh crore, as per the data.

Growth in loans to industry slowed to 0.8% in July as compared with 6.1% growth in July 2019, according to the data on sectoral deployment of bank credit for July 2020, released by RBI on Monday.

Advances to agriculture and allied activities registered a growth of 5.4% in the reporting month as com pared with a growth of 6.8% last year in the same period.

Credit to the services sector continued to grow at a robust, albeit decelerated, rate of 10.1% in July 2020 as against 15.2% growth.

Within this sector, credit to computer software and tourism, hotels & restaurants bucked the downtrend, registering accelerated growth in July 2020 vis-a-vis the growth in the corresponding month of the previous year, the data showed.

Personal loans continued to perform well registering a growth of 11.2% as compared with 17% growth in July 2019. Within this sector, vehicle loans registered accelerated growth of 8.1% in July 2020 as compared with the growth of 4.9% in the corresponding month of the previous year, according to the data.

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The central bank also released data on deposits and advances of scheduled commercial banks for the June 2020 quarter.

Bank credit growth moderated to 6.4% while deposits growth accelerated to 11.5% in the quarter ended June 2020, the RBI data showed.

Growth in bank credit was 11.7% and deposits at 10.1% in the corresponding month of the previous year.

During the period, rural branches of banks continued to record double digit credit growth, it showed.

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The deceleration in credit growth occurred across bank groups -- credit growth (y-o-y) for private sector banks moderated to 7.2% in June 2020 from 17.5% a year ago but it remained higher than that for public sector banks at 5.7%.

The all-India credit-deposit (C-D) ratio declined to 73.1% in June 2020 from 76% in the previous quarter, as per the RBI data.

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