Non-food credit growth decelerated to 5.6 pc in October 2020 compared to a growth of 8.3 pc in the same month of the previous year, RBI data showed. Growth in loans to agriculture and allied activities accelerated to 7.4 pc in the reporting month from a growth of 7.1 pc last year, the data on Sectoral Deployment of Bank Credit - September 2020, released by the Reserve Bank of India, showed.
Credit to industry contracted by 1.7 pc in October 2020 as compared with 3.4 pc growth in October 2019. This was mainly on the back of contraction in credit to large industries by 2.9 pc in October 2020 (4.2 pc growth a year ago), though credit to medium industries registered a robust growth of 16.7 pc in October 2020 (1.2 pc a year ago), the RBI said. Within industry, credit to food processing, petroleum, coal products & nuclear fuels, leather & leather products, paper & paper products and vehicles, vehicle parts & transport equipment registered accelerated growth in October 2020 as compared with the growth in the corresponding month of the previous year.
However, credit growth to beverage & tobacco, rubber plastic & their products, chemical & chemical products, cement & cement products, all engineering, gems & jewellery, infrastructure and construction decelerated/ contracted, the data showed. In September 2020, credit to industry recorded nil growth. Growth in credit to the services sector accelerated to 9.5 pc in October 2020 from 6.5 pc in the same month of the previous year.
Analysts expect RBI to keep key policy rates unchanged in the next policy meet
India's GDP Contraction Forecast On Additional Govt Stimulus: Moody's
Banks are in trouble and GDP too, development or destruction: Rahul Gandhi