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BW Businessworld

Banks' Credit Growth To Industry Slows In January: RBI

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Indian banks' credit to industry grew at a sluggish pace in January compared with year ago, data from the Reserve Bank of India (RBI) showed on 12 March' 2013.
 
Credit to industry increased by 15.2 per cent in January, slower than the 20.2 per cent increase in the year-ago period, the RBI said in a statement.
 
However, credit to sectors such as chemicals, coal products and nuclear fuels, wood and leather grew faster than a year ago, the statement said.
 
Overall, non-food credit grew 14.6 in January, slower than 15.9 per cent a year ago.
 
Banks' credit to the agriculture sector increased by 19.8 per cent in January, up from 6.3 per cent a year ago, it said.
 
Credit to the services sector increased by 12.0 per cent in January, up from 15.1 per cent a year ago.
 
So far this fiscal, banks' advances grew around 11.1 per cent, compared with 11.8 per cent a year earlier, while deposit growth was around 11 per cent compared with 11.8 per cent a year ago, provisional data from the RBI showed.
 
The central bank has projected deposit growth at 15 per cent and credit growth at 16 per cent for the financial year that ends this month.
 
Banks have shied away from aggressive lending due to concerns over asset quality and a rise in non-performing assets, while an overall slowdown in the economy has hurt demand.
 
The Indian economy has lost momentum in recent years and is expected to grow at 5 per cent, the lowest in a decade.

(Reuters)