The Reserve Bank of India’s September 2023 report revealed a year-on-year deceleration in credit growth in the industrial sector, dropping to 6.5% from 12.6%. The report also noted a slight decrease in personal loans, which fell to 18.2% from 19.4%, largely due to a moderation in housing credit.
On the other hand, the agriculture and services sectors saw an increase in credit growth. The agriculture sector rose to 16.8% from 13.4%, while the services sector increased to 21.3% from 20.2%. This growth was primarily driven by Non-Banking Financial Companies (NBFCs) and trade.
Despite the overall slowdown in the industrial sector, certain segments experienced acceleration. The ‘basic metal & metal products’, ‘food processing’, and ‘textiles’ sectors saw increased growth rates, contrasting with ‘all engineering’, ‘chemicals & chemical products’, and ‘infrastructure’ sectors that faced deceleration.
This comprehensive data, which represents 93% of total non-food credit, was collected from 40 select banks. The report provides significant insights into credit trends and sectoral performance, highlighting the shifting dynamics within the economy.
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