The pace of credit growth slowed to 14.4 percent in September, compared with 15.3 percent in the same period a year ago, due to more circumspect lending to retail and non-bank companies, the latest sectoral deployment of bank credit data showed.. Lending to the services sector slowed to 15.2 percent year-on-year (y-o-y) in September 2024 from 21.6 percent a year ago, primarily due to lower growth in credit to ‘non-banking financial companies’, the RBI said.. Retail loan growth moderated to 16.4 percent (y-o-y) in September 2024 as compared with 18.2 percent a year ago, largely due to decline in growth in ‘other personal loans’, ‘vehicle loans’ and ‘credit card outstanding, the central bank said. However, ‘housing’ – the largest constituent of this segment – recorded accelerated growth.. Credit growth to industry improved to 9.1 per cent (y-o-y) in September 2024 compared with 6 per cent a year ago. Credit to agriculture and allied activities was almost flat at 16.4 per cent (y-o-y) in September 2024, compared with 16.7 percent in September 2023.. The improved industrial credit growth was broad-based across ‘micro & small’, ‘medium’ and ‘large’ industries, RBI said . Among major industries, credit to ‘chemicals and chemical products’, ‘food processing’, ‘petroleum, coal products and nuclear fuels’, and ‘all engineering’ recorded a higher growth in September 2024 as compared to their respective growth rates a year ago, while credit growth to ‘basic metal and metal product’, and ‘textiles’ moderated.. Nominations for ET MSME Awards are now open. The last day to apply is November 30, 2024. Click here to submit your entry for any one or more of the 22 categories and stand a chance to win a prestigious award.. (You can now subscribe to our Economic Times WhatsApp channel)
