According to RBI data, non-food bank credit increased by 5.9% in May.

RBI data, non-food bank credit increased by 5.9%

According to RBI data, non-food bank lending growth fell to 5.9% in May 2021, down from 6.1 per cent the previous month. According to RBI data issued on Wednesday, credit to agriculture and related sectors continued to perform strongly, growing at a faster rate of 10.3 per cent in May 2021 compared to 5.2 per cent in May 2020. The Reserve Bank of India (RBI) published its Sectoral Deployment of Bank Credit for May 2021 on Wednesday. According to RBI data, non-food bank credit increased by 5.9% in May.

Advances to industry slowed to 0.8 per cent in May 2021, down from 1.7 per cent a year earlier. Credit to medium-sized businesses grew by 45.8% in May 2021, compared to a decline of 5.3 per cent a year earlier, according to the data. Credit to micro and small businesses increased by 5% in May 2021, compared to a reduction of 3.4 per cent a year earlier, while credit to major businesses decreased by 1.7 per cent in May 2021, compared to a contraction of 3.4 per cent a year earlier.

According to RBI data, loan growth in the services sector slowed to 1.9 per cent in May 2021, down from 10.3 per cent in May 2020, owing to a slowdown in credit growth to non-banking financial companies (NBFCs), transportation operators, and commercial real estate.

The debt market, on the other hand, continues to perform strongly, with a fast expansion of 12.4% in May 2021, compared to 7.7% a year ago, according to the report. Personal loans grew at a faster rate of 12.4% in May 2021, compared to 10.6% a year earlier, owing to increased vehicle loans and credit card debt, according to the report.

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