Non-food bank credit extended by banks picked up steam in October 2018, growing by 13.4 per cent, when compared to an increase of 6.6 per cent in October 2017. This was on the back of robust demand for loans from the services sector, personal loans segment, agriculture, and industry.
As per Reserve Bank of India’s ‘Sectoral Deployment of Bank Credit’ data, credit to the services sector expanded by 27.4 per cent in October 2018, compared to 9.4 per cent in October 2017. Within the services sector, credit to the non-banking finance company (NBFC) segment soared 55.6 per cent in October 2018, compared to 8.1 per cent in October 2017. Credit to the ‘other services’ segment was up 35.6 per cent in October 2018, compared to 16.6 per cent in October 2017
Personal loans increased by 16.8 per cent in October 2018 against 16 per cent in October 2017. Credit to agriculture and allied activities increased by 8 per cent in October 2018, compared to an increase of 5.5 per cent in October 2017.