Banks disbursed less amount of loan to non-food sectors last fiscal
Banks disbursed less amount of loan to non-food sectors during the last fiscal as compared to the credit extended to various sectors a year ago. Non-food bank credit grew by only 8.6% between March 2014 and March 2015. During previous year, the credit was increased by 14.3%, according to the latest data of the Reserve Bank of India (RBI). The data on disbursal of bank credit collected from select 47 scheduled commercial banks shows that non-food sector accounted for about 95 per cent of the total loan disbursal. However, the credit to agriculture and allied activities increased by 15% during 2014-15. The credit growth in this sector recorded 13.5% increase a year ago. Experts say that sluggish economic growth has led to sharp fall in demand for loan among entrepreneurs. The industry sector loan grew by only 5.6% during last fiscal. The total credit to industry has increased only by 5.6% during the last fiscal, down from an increase of 13.1% recorded during 2013-14. “Deceleration in credit growth to industry was observed in all major sub-sectors, barring construction,” the RBI said. Although, the government has been focusing on the growth of its service sector for the past few years, the sector seems to have been battling with challenges. According to the RBI data, banks’ credit to the services sector has registered 5.6% growth during 2014-15, well below than the increase of 16.1% during 2013-14. All major sub-sectors have witnessed deceleration during the period, the data said. On the other hand, Banks’ credit disbursal has maintained status quo in terms of individual loan. Personal loans have registered 15.4% growth during the last financial year. The growth rate was almost equal, 15.5%, during the previous fiscal. Bank loan towards non-banking financial companies (NBFCs) has also recorded a sharp reduction in the past two financial years. Credit to NBFCs increased by only 6.4% last year as compared to the growth rate of 13.2% during 2013-14.
May 1, 2015 | 5:31 pm IST.
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