July 2013 Gross Bank Credit grows at 14.6%

On a year-on-year basis, gross bank credit increased by 14.6% in July 2013 as compared to 13.1% in June 2013. Food credit increased by 5.7% in July 2013 as compared with 3% in June 2013 and non-food bank credit increased by 14.8% in July 2013 as compared with 13.4% in June 2013.

The credit to NBFCs increased by 5.4% in July 2013 as compared with 1.9% in June 2013. The credit to agriculture increased by 10.5% in July 2013 as against 9.9% in June 2013.

The gross bank credit stands at Rs. 50,883 billion as on July 2013 as compared to Rs.44, 393 billion as on July 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 July 2013 as compared to 14.1% during June 2013. The acceleration in credit growth to industry in the month of July 2013 was observed in all the major sub-sectors, food processing, gems & jewellery, cement & cement products, wood & wood products, infrastructure, chemical & chemical products, metals, paper, textiles, leather & leather products and beverages & tobacco.

The services sector credit increased by 13.3% in July 2013 as compared with 12.1% in June 2013. Personal loans increased by 17% in July 2013 as compared with 15.6% in June 2013. Growth in the components of personal loans in July 2013 stood at housing (18.4%), advances against fixed deposits (17.2%), advances to individuals against shares, bonds, etc. (12.5%), education (8.9%) and vehicle loans (23.4%).

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

Sector	June 2013*	July 2013**	June 2013^ (Y-O-Y growth)	July 2013^^ (Y-O-Y growth)
			(%)	(%)
Gross Bank Credit	51019	50883	13.1	14.6
Food Credit	1101	988	3.0	5.7
Non-food Credit	49918	49894	13.4	14.8
Agriculture & Allied Activities	6051	6027	9.9	10.5
Industry (Micro & Small, Medium and Large )	22820	22774	14.1	15.9
Services	11699	11671	12.1	13.3
Personal Loans	9348	9423	15.6	17.0
Priority Sector	16105	16283	14.7	16.3

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 June 28, 2013, ** Data pertains as on July 26, 2013, ^Data pertains as on June 28, 2013 over June 29, 2012

^^ Data pertains as on July26, 2013 over July 27, 2012

Warm regards,

Dr. S P Sharma

Chief Economist