Data on sectoral deployment of bank credit collected from select 41 scheduled commercial banks, accounting for about 95 per cent of the total non-food credit deployed by all scheduled commercial banks, for the month of May 2017 are set out in Statements I and II.
Highlights of the sectoral deployment of bank credit are given below:
- Credit to agriculture and allied activities increased by 7.4 per cent in May 2017, lower than the increase of 15.6 per cent in May 2016.
- Credit to industry contracted by 2.1 per cent in May 2017 in contrast with an increase of 0.9 per cent in May 2016. Credit growth to major sub-sectors such as ‘infrastructure’, ‘food processing’, ‘basic metal & metal products’ and ‘textiles’ decelerated/contracted. However, credit growth to ‘petroleum, coal products & nuclear fuels’, ‘rubber, plastic & their products’, ‘vehicles, vehicle parts & transport equipment’ and ‘gems & jewellery’ accelerated.
- Credit to the services sector increased by 4.0 per cent in May 2017, lower than the increase of 9.3 per cent in May 2016.