Lending to industry shrank 1.7%, personal lending slowed in October: RBI


Year-over-year industrial lending contracted 1.7 percent in October and personal lending growth slowed as banks tightened their large-industry purses, despite medium-sized industries seeing robust credit growth.

Lending to large industries fell 2.9 percent, but lending to medium-sized businesses grew 16.7 percent year over year. Lending to the industrial segment had grown by 3.4 percent in October 2019.

Credit growth for agriculture and related activities accelerated from 7.1 percent in October 2019 to 7.4 percent in October 2020.

ALSO READ: What makes the merger of HDFC Ltd and HDFC Bank an attractive proposition now?

Personal loans rose 9.3 percent from 17.2 percent in October 2019.

“In this sector, vehicle loans continued to perform well and recorded accelerated growth of 8.4 percent in October 2020 compared to a growth of 5.0 percent in October 2019,” said a statement by the RBI.

Credit growth in the service sector accelerated from 6.5 percent in October 2019 to 9.5 percent in October 2020. Within this sector, loans to “professional services”, “computer software” and “retail” recorded accelerated growth in October 2020 compared to – vis the growth in the corresponding month of the previous year, it said.

Overall, year-on-year credit growth for non-food banks slowed to 5.6 percent in October 2020, compared to 8.3 percent a year ago.

Dear Reader,

Business Standard has always endeavored to provide updated information and commentary on developments that are of interest to you and have far-reaching political and economic implications for the country and the world. Your encouragement and constant feedback to improve our offering has only strengthened our determination and commitment to these ideals. Even in these troubled times resulting from Covid-19, we continue to strive to keep you updated with credible news, authoritative views, and concise comments on current affairs.
However, we have a request.

In the fight against the economic effects of the pandemic, we need your support even more so that we can continue to offer you high-quality content. Our subscription model has had an encouraging response from many of you who have subscribed to our online content. More subscriptions to our online content can only help us achieve our goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practice the journalism to which we are dedicated.

Support quality journalism and Subscribe to Business Standard.

Digital editor


About Gloria Skelton

Check Also

SiriusPoint Ltd. Contingent value rights to negotiate on the

[ad_1] HAMILTON, Bermuda, June 16, 2021 (GLOBE NEWSWIRE) – SiriusPoint Ltd. (“SiriusPoint” or the “Company”) …

Leave a Reply

Your email address will not be published.