RBI Data Indicates Slowdown in Credit Growth, Rise in Agriculture and Services Sectors

The Reserve Bank of India’s report for September 2023 indicates a slowdown in credit growth within the industrial sector, which decreased to 6.5% from the previous year’s 12.6%. Additionally, personal loans experienced a minor decline, dropping to 18.2% from 19.4%, largely attributed to a slowdown in housing credit.

In contrast, both the agriculture and services sectors showed an uptick in credit growth. The agriculture sector increased from 13.4% to 16.8%, while the services sector rose from 20.2% to 21.3%. This growth was primarily driven by Non-Banking Financial Companies (NBFCs) and the trade sector.

Despite the overall deceleration in the industrial sector, certain sectors saw increased growth rates. Specifically, the ‘basic metal & metal products’, ‘food processing’, and ‘textiles’ sectors demonstrated positive trends, whereas the ‘all engineering’, ‘chemicals & chemical products’, and ‘infrastructure’ sectors faced declines.

The data, which covers 93% of total non-food credit, was obtained from 40 select banks. This report offers valuable insights into credit trends and sectoral performance, reflecting the changing dynamics of the economy.

This article was generated with the support of AI and reviewed by an editor.