March 2013 Gross Bank Credit grows at 14.1%

On a year-on-year basis, gross bank credit increased by 14.1% in March 2013 as compared with 16.8% in March 2012. Food credit increased by 20.8% in March 2013 as compared with 31.4% increase in March 2012 and non-food bank credit increased by 14% in March 2013 as compared 16.6% increase in March 2012.

The credit to NBFCs increased by 14.7% in March 2013 as compared with the increase of 23.9% in March 2012. The credit to agriculture increased by 8.1% in March 2013, up from 13.3% in the corresponding period of last year.

The gross bank credit has grown from Rs. 43,793 billion as on March FY2012 to Rs. 49,984 billion as on March FY2013 with a growth of 14.1%.

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

Source: PHD Research Bureau, compiled from RBI

Credit to industry increased by 15.7% in March 2013 as compared with the increase of 20.3% in March 2012. The deceleration in credit growth to industry was observed in major sub-sectors, barring food processing, textiles, leather and leather products, wood and wood products, chemicals and chemical products, glass and glassware, cement and cement Products, and vehicles, vehicle parts and transport equipment.

The services sector credit disbursement increased by 13.6% in March 2013 as compared with an increase of 14.4% in March 2012. Personal loans increased by 14.5% in March 2013 as compared with the increase of 12.9% during the corresponding period of the previous year. Growth in the components of personal loans stood at housing (14.6%), advances against fixed deposits (7.5%), advances to individuals against shares, bonds, etc. (2.7%) , education (10%)and vehicle loans (24.9%).

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

Sector	March 2012*	March 2013**	2011-2012 Over  2010- 2011^	2012-13 over 2011-12 ^^
			(%)	(%)
Gross Bank Credit	43793	49984	16.8	14.1
Food Credit	819	990	31.4	20.8
Non-food Credit	42974	48994	16.6	14.0
Agriculture & Allied Activities	5477	5922	13.1	8.1
Industry (Micro & Small, Medium and Large )	19408	22448	20.3	15.7
Services	10188	11579	14.4	13.6
Personal Loans	7900	9045	12.9	14.5
Priority Sector	14227	15454	12.1	8.6

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 23, 2012, ** Data pertains as on Mar 23, 2013, ^Data pertains as on Mar 23, 2012 over Mar 25, 2011

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

Warm regards,

Dr. S P Sharma

Chief Economist

________________________________________________

PHD Research Bureau

PHD Chamber of Commerce and Industry

August Kranti Marg, New Delhi – 110016

Tel 91 11 49545454, Fax 91 11 26855450,

E mail – research@phdcci.in

Website www.phdcci.in