Non-food bank credit growth dips to 5.8%

Data from the Reserve Bank of India shows that credit growth to beverage & tobacco, construction, infrastructure, rubber plastic & their products, chemical & chemical products, glass & glassware and all engineering contracted in September 2020. From 8.1% in September, non-food bank credit growth decelerated to 5.8%.

However, credit to food processing, petroleum, coal products & nuclear fuels, leather & leather products, wood & wood products, and paper & paper products recorded an accelerated yoy growth during this period. There was a 5.9% rise in credit to food processing, petroleum, coal products & nuclear fuels, leather & leather products, wood & wood products, and paper & paper products, vis-a-vis a growth of 7% in the same month of the last year.

“Bucking the downtrend, credit growth to the services sector accelerated to 9.1 per cent in September 2020 from 7.3 per cent in September 2019,” te study said. Credit to computer software, trade and tourism, hotels & restaurants, also saw a yoy acceleration in growth.