Decline in growth of non-food credit to 6.8 %

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As per the RBI data, there is a decline in non-food credit growth to 6.8 % year-on-year in May from 11.4% during the previous year. The outstanding non-food credit has increased to Rs 19.3 lakh crore in May 2020 against Rs 84.51 lakh crore in 2019.

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

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

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

“Within the 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

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