Sep 2013 Gross Bank Credit grows at 17.9%

On a year-on-year basis, gross bank credit increased by 17.9% in September 2013 as compared to 16.8% in August 2013. Food credit increased by 6.3% in September 2013 as compared with 5.2% in August 2013 and non-food bank credit increased by 18.2% in September 2013 as compared to 17% in August 2013.

The credit to NBFCs increased by 26.6% in September 2013 as compared with 18% in August 2013. The credit to agriculture increased by 13.2% in September 2013 as against 12.1% in August 2013.

The gross bank credit stands at Rs. 52,969 billion as on September 2013 as compared to Rs.49, 642 billion as on September 2012.

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

Source: PHD Research Bureau, compiled from RBI

Credit to industry increased by 17.6% in September 2013 as compared to 17.3% in August 2013. The acceleration in credit growth to industry in the month of September 2013 was observed in all the major sub-sectors, barring engineering, construction, glass and glassware and mining and quarrying.

The services sector credit increased by 22.1% in September 2013 as compared with 18.4% in August 2013. Personal loans increased by 17.9% in September 2013 as compared with 17.8% in August 2013. Growth in the components of personal loans in September 2013 stood at housing (20%), advances against fixed deposits (17.6%), advances to individuals against shares, bonds, etc. (18.3%), education (8.7%) and vehicle loans (23.1%).

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

Sector	August 2013*	September 2013**	August 2013^ (Y-O-Y growth)	September 2013^^ (Y-O-Y growth)
			(%)	(%)
Gross Bank Credit	51991	52969	16.8	17.9
Food Credit	979	949	5.2	6.3
Non-food Credit	51012	52020	17.0	18.2
Agriculture & Allied Activities	6097	6100	12.1	13.2
Industry (Micro & Small, Medium and Large )	23301	23715	17.3	17.6
Services	12050	12553	18.4	22.1
Personal Loans	9564	9653	17.8	17.9
Priority Sector	16326	16445	16.6	17.6

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 August 23, 2013, ** Data pertains as on September 20, 2013, ^Data pertains as on August 23, 2013 over August 24, 2012

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

Warm regards,

Dr. S P Sharma

Chief Economist