Bank credit rose by 5.73 percent while deposits surged by 11.34 percent somewhere towards the end of 2019. In December 2019 bank credit had stood at Rs 99.35 lakh crore and deposits at Rs 131.06 lakh crore.
In November, the growth in credit was 5.82 percent and deposits were 10.89 percent. Credit growth in agricultural activities accelerated to 7.4 percent in October 2020 from 7.1 percent in October 2019. The calibrated contraction in credit industry by 1.7 percent in October 2020 as compared with 3.4 percent growth in October 2019 mainly due to the slow credit growth towards the large industries by 2.9 percent in October 2020, though a credit accumulation towards the medium-scaled industries showed a growth of around 16.7 percent.
Within the industry credit to food processing, petroleum, coal products, and nuclear fuels, leather products, paper products, and vehicle parts & transport equipment registered slow growth in October 2020 in comparison with the growth in the corresponding month of the previous year.However the growth of various sectors tending to beverage and tobacco, rubber plastic and their products, chemical products, all engineering goods and construction material contracted.
Credit growth towards the services sector grew to 9.5 percent from 6.5 percent in comparison to the last year. Within this sector, credit to professional services and trade registered accelerated growth in October 2020.
Personal loans showed slow growth of 9.3 percent through a slight improvement from the growth of 17.6 percent in 2019. Vehicle loans continued to perform well registering a heightened growth of 8.4 percent in October 2020.