Growth in loans to industries continued to be anaemic in July and rose at just 10.1% year-on-year to R25,07,900 crore compared with the growth of 15.9 % in the corresponding period in July 2013, latest data from the Reserve Bank of India on Thursday showed.
Credit to large industries grew only 1.8% y-o-y to R20,25,700 crore compared with a growth of 16.7% in the corresponding period last year.
Credit to micro and small industries too grew at a mere 2.3% to R3,543 crore compared with the growth of 20.3 % last year.
Deceleration in credit growth was observed in
infrastructure, basic metals, textiles, chemicals and food processing industries, among others, the central bank noted.
Retail loans grew at a faster pace of 14.5% to R10,71,700 crore in July. However, retail loans recorded a growth of 17% last year.
The consumer durables loan segment grew the fastest in the retail segment and increased 10% to R14,100 crore while credit to home loans was also muted and recorded a growth of 6.1% to R5,68,000 crore.
Non-food credit in July 2014 showed some improvement and grew by 12.6% compared with an increase of 14.8% in July 2013. In FY14, credit growth had reached a year high of 18.4% in September 2013, following the RBI’s extraordinary liquidity tightening measures in July.