Non-food bank credit grows 5.9% in June: RBI data

• Follow

Non-food bank credit growth stood at 5.9% in June compared to 6% in the year-ago period, according to RBI data released on Friday.

Credit to agriculture and allied activities continued to perform well, registering an accelerated growth of 11.4% in the reporting month compared to 2.4% in the same month of the previous year, as per RBI data on Sectoral Deployment of Bank Credit – June 2021.

Advances to industry contracted 0.3% in June whereas there was a 2.2% growth in the same period a year ago.

Credit to medium industries registered a robust growth of 54.6% in June. Growth in credit to micro and small industries accelerated to 6.4% in June whereas it was a contraction of 2.9% a year ago.

Credit to large industries contracted 3.4% in June 2021. In the year-ago period, there was a growth of 3.6%. Growth in loans to the services sector decelerated to 2.9% in the reporting month from 10.7% in June 2020, mainly due to contraction/deceleration in credit growth to commercial real estate, NBFCs and tourism, hotels and restaurants.