Agriculture

Sharp fall in credit growth to agriculture, services sectors

Credit to agriculture and allied activities increased by 5.8 percent in September 2017, lower than the increase of 15.9 percent in September 2016

Sharp fall in credit growth to agriculture, services sectors

Credit growth to the agriculture and services segments has seen a fall in the last 12 months. The Reserve Bank of India on Tuesday said credit to agriculture and allied activities increased by 5.8 percent in September 2017, lower than the increase of 15.9 percent in September 2016, The Indian Express reported.

Quoting Reserve Bank of India, the report said, credit to the services sector increased by 7.0 percent in September 2017, down from the increase of 18.4 percent in September 2016. On a year-on-year (y-o-y) basis, total non-food bank credit increased by 6.1 per cent in September 2017 as compared with an increase of 10.8 per cent in September 2016.

“Credit to industry contracted by 0.4 percent in September 2017 as compared with an increase of 0.9 percent in September 2016,” the RBI said. Credit growth to major sub-sectors such as infrastructure, all engineering and vehicles, vehicle parts & transport equipment’ contracted.

However, credit growth to basic metal & metal products, textiles and food processing increased. Personal loans increased by 16.8 percent in September 2017 against the increase of 19.7 percent in September 2016, it said.

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