Bank credit rises by 8.8% in Nov as industrial demand up 1%

Mumbai, Dec 29 (PTI) Lead by a tepid 1 percentagepoint growth in industrial credit, non-food credit as a wholeof banks rose by 8.8 per cent in November, which is almostdouble from the 4.8 percentage point growth clocked in theyear-ago month, according to the RBI data released today.Significantly, advances to the industry rose by 1percentage point in the reporting month compared to a 3.4percentage point contraction in the year-ago month.In October this year, non-food bank credit had risenby 6.6 per cent.Credit to agriculture and allied activities increasedby 8.4 per cent in the reporting month which is slower thanthe 10.3 per cent growth in the same month last year.Personal loans increased by 17.3 per cent compared to15.2 per cent growth in the same moths last year."Credit to major sub-sectors such as infrastructure,vehicles, vehicle parts and transport equipment, basic metaland metal products and mining & quarrying contracted," thecentral bank said.However, credit growth to textiles, chemical &chemical products, all engineering, food processing andconstruction accelerated.Loans to the services sector increased by 14 per cent in the month, up from 7.1 per cent in November last year, RBI data showed.

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