Growth in bank credit to industry slowed down to 5.2 percent annually in July 2023 while lending to the agriculture sector showed an improvement, the RBI said on Thursday.

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The Reserve Bank released data on sectoral deployment of bank credit for July 2023 collected from 40 select banks, accounting for about 93 percent of the total non-food credit deployed by all commercial banks.

On a year-on-year (YoY) basis, non-food bank credit registered a growth of 14.8 percent in July 2023 as compared with 15.1 percent a year ago.

"Credit to industry registered a growth of 5.2 percent (YoY) in July 2023 as compared with 10.5 percent in July 2022," it said.

It also said that credit growth to agriculture and allied activities improved to 16.8 percent (YoY) in July 2023 from 13.2 percent a year ago.

Among major industries, credit growth (YoY) to ‘basic metal & metal products’ and ‘textiles’ accelerated in July 2023 as compared with the corresponding month of the previous year.

On the other hand, the growth in credit growth to ‘chemicals and chemical products’, ‘food processing’ and ‘infrastructure’ decelerated/contracted.

According to the data, loan growth to services sector accelerated to 19.4 percent (YoY) in July 2023 from 16.7 percent a year ago, primarily due to ‘trade’ and ‘commercial real estate’.

Personal loans registered a growth of 18.4 percent (YoY) in July 2023 (18.7 percent a year ago), supported by ‘housing’ and ‘vehicle’ loans, the RBI said.

(Edited by : Keshav Singh Chundawat)