Oct 2013 Gross Bank Credit grows at 16.6%

On a year-on-year basis, gross bank credit increased by 16.6% in October 2013 as compared to 17.9% in September 2013. The growth of food credit declines by (-) 1.6% in October 2013 as compared with 6.3% in September 2013 and non-food bank credit increased by 17% in October 2013 as compared to 18.2% in September 2013.

The credit to NBFCs increased by 22.1% in October 2013 as compared with 26.6% in September 2013. The credit to agriculture increased by 13.2% in October 2013 and also in the month of September 2013.

The gross bank credit stands at Rs. 52,796 billion as on October 2013 as compared to Rs.45,261 billion as on October 2012.

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

Source: PHD Research Bureau, compiled from RBI

Credit to industry increased by 15.9% in October 2013 as compared to 17.6% in September 2013. The deceleration in credit growth to industry in the month of October 2013 was observed in respect of cement and cement products, basic metals and metal products, vehicles, vehicle parts and transport equipments and mining and quarrying, while most other sub- sectors recorded acceleration.

The services sector credit increased by 21.7% in October 2013 as compared with 22.1% in September 2013. Personal loans increased by 16.4% in October 2013 as compared with 17.9% in September 2013. Growth in the components of personal loans in October 2013 stood at housing (19.3%), advances against fixed deposits (9.6%), advances to individuals against shares, bonds, etc. (16%), education (8.9%) and vehicle loans (22.4%).

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

Sector	September 2013*	October 2013**	September 2013^ (Y-O-Y growth)	October 2013^^ (Y-O-Y growth)
			(%)	(%)
Gross Bank Credit	52969	52796	17.9	16.6
Food Credit	949	866	6.3	(-) 1.6
Non-food Credit	52020	51931	18.2	17.0
Agriculture & Allied Activities	6100	6192	13.2	13.2
Industry (Micro & Small, Medium and Large )	23715	23565	17.6	15.9
Services	12553	12472	22.1	21.7
Personal Loans	9653	9702	17.9	16.4
Priority Sector	16445	16685	17.6	18.0

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 September 20, 2013, ** Data pertains as on October 18, 2013, ^Data pertains as on September 20, 2013 over September 21, 2012

^^ Data pertains as on October 18, 2013 over October 19, 2012

Warm regards,

Dr. S P Sharma

Chief Economist

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