Non-food credit growth slows to 7.7% in June

Non-food credit growth of commercial banks slowed to 7.7 <g data-gr-id="41">per cent</g> in June 2015 as against 13 per cent expansion in the same period last fiscal. The non-food credit growth in June was also slower than 9 <g data-gr-id="45">per cent</g> in the previous month of May, RBI data showed.

Credit to agriculture and allied activities increased by 10.6 <g data-gr-id="28">per cent</g> in the period as against an increase of 18.8 <g data-gr-id="29">per cent</g> in the year-ago month.

RBI collects data on a monthly basis from select scheduled commercial banks, accounting for about 95 <g data-gr-id="30">per cent</g> of the total non-food credit deployed by all scheduled commercial banks.

In the month, credit to industry rose by 4.1 <g data-gr-id="33">per cent</g> against that of 10.2 per cent in June 2014. 

"Deceleration in credit growth to industry was observed in all major sub-sectors," RBI said.

Advances to the services sector increased by 6 <g data-gr-id="31">per cent</g> in the reporting period as compared with the increase of 13.6 <g data-gr-id="32">per cent</g> in the same month last year. 

Loans to non-banking financial companies (NBFCs) increased marginally by 1.6 per cent as compared with the increase of 16.7 <g data-gr-id="25">per cent</g> year-ago. In May, banks credit to NBFCs had increased by 

5.6 <g data-gr-id="23">per cent</g>.