Bank credit growth sees sharp acceleration in August; industry, services lending rises

The acceleration was broad-based, with lending to both industry and services growing significantly faster than a year earlier, indicating stronger credit demand across major parts of the economy.

Credit to industry grew 18.2 per cent, up from 7 per cent in the corresponding period last year. RBI said lending to large and medium industries accelerated, while credit to micro and small industries continued to expand steadily.

The services sector recorded the fastest growth among the broad categories, with bank credit rising 24.3 per cent, compared with 10.3 per cent a year earlier.

RBI said the increase was supported by strong lending to non-banking financial companies (NBFCs), trade, professional services and commercial real estate.

Agriculture credit also strengthened, growing 17.2 per cent year-on-year against 7.6 per cent in the corresponding period of the previous year.

Meanwhile, personal loans grew 16.9 per cent, compared with 11.9 per cent a year earlier. Housing and vehicle loans continued to record double-digit growth, while growth in credit card outstanding and loans against gold jewellery slowed.

The RBI data are based on figures from 41 scheduled commercial banks.

The latest numbers show that the pickup in bank lending is not being driven only by household borrowing, with stronger credit growth visible across industry and services as well. (ANI)

(This content is sourced from a syndicated feed and is published as received. The Tribune assumes no responsibility or liability for its accuracy, completeness, or content.)