Credit growth in agriculture space surges to 16.6% in August: RBI

Credit growth in agriculture and allied activities improved to 16.6 per cent annually in August 2023, and the loan outstanding neared Rs 18 lakh crore, revealed the latest Reserve Bank of India data.

The credit growth in agriculture and allied activities was 13.4 per cent in August 2022.

According to the data on sectoral deployment of bank credit, the gross bank credit outstanding to the segment was Rs 17,96,113 crore.

The Reserve Bank data also showed that credit to industry registered a growth of 6.1 per cent (year-on-year) in August 2023 compared to 11.4 per cent a year ago. 

Among major industries, credit growth (y-o-y) to basic metal and metal products and textiles accelerated in August 2023. However, the credit growth in chemicals and chemical products, food processing and infrastructure decelerated.

The expansion in credit to services sector accelerated to 20.7 per cent (y-o-y) in August 2023 from 17.4 per cent a year ago, primarily due to non-banking financial companies (NBFCs) and commercial real estate.

Personal loan growth decelerated to 18.3 per cent on an annual basis in August 2023 against 19.4 per cent a year ago due to moderation in credit to housing.