April 2013 Gross Bank Credit grows at 13.8%

 

On a year-on-year basis, gross bank credit increased by 13.8% in April 2013 as compared with 13.4% in March 2013. Food credit increased by 10.4% in April 2013 as compared with 15.5% in March 2013 and non-food bank credit increased by 13.8% in April 2013 as compared with 13.3% in March 2013.

 

The credit to NBFCs increased by 5.2% in April 2013 as compared with 12.6% in March 2013. The credit to agriculture increased by 10.5% in April 2013 as against 7.7% in March 2013.

 

The gross bank credit stands at Rs. 49,815 billion as on April 2013 as compared to Rs. 49,642 billion as on March 2013.

 

 

  Monthly trend in growth of gross bank credit (%)                                                    (YoY)

Source: PHD Research Bureau, compiled from RBI

 

 

Credit to industry increased by 15.5% in April 2013 as compared with the 14.9% in March 2013. The deceleration in credit growth to industry in the month of April 2013 was observed in all the major sub-sectors, barring food processing, wood & wood products, cement & cement products, chemicals & chemical products, infrastructure, paper & paper products, glass & glassware, textiles and leather & leather products.

 

The services sector credit increased by 11.6% in April 2013 as compared with 12.7% in March 2013. Personal loans increased by 14.8% in April 2013 as compared with 14.04% in March 2013. Growth in the components of personal loans in April 2013 stood at housing (15.1%), advances against fixed deposits (9%), advances to individuals against shares, bonds, etc. (-4.3%) , education (9.6%)and vehicle loans (26.6%).

 

  Deployment of Gross Bank Credit by major sectors                                                                          (Rs. Billion)

Sector	March 2013*	April 2013**	March 2013^ (Y-O-Y growth)	April 2013^^ (Y-O-Y growth)
			(%)	(%)
Gross Bank Credit	49642	49815	13.4	13.8
Food Credit	946	930	15.5	10.4
Non-food Credit	48696	48884	13.3	13.8
Agriculture & Allied Activities	5899	6011	7.7	10.5
Industry (Micro & Small, Medium and Large )	22302	22390	14.9	15.5
Services	11486	11359	12.8	11.6
Personal Loans	9009	9125	14.0	14.8
Priority Sector	15398	15892	8.2	13.2

Source: PHD Research Bureau, compiled from RBI

Note: Data are provisional and are collected on a monthly basis from select 47 scheduled commercial banks accounting for

 about 95% of the total non-food credit deployed by all scheduled commercial banks;

  * Data pertains as on Mar 22, 2013, ** Data pertains as on Apr 19, 2013, ^Data pertains as on Mar 22, 2013 over Mar 23, 2012

^^ Data pertains as on Apr 19, 2013 over Apr 20, 2012

 

 

Warm regards,

 

Dr. S P Sharma

Chief Economist