1.70 per cent reduction in lending to the country's industries

Mumbai, Ta. 28 November 2020, Saturday

In October, lending to the country's industries declined by 1.50 per cent year-on-year. The growth rate of personal loans has also seen a decline. However, medium-sized industrial units have seen strong growth in lending, according to RBI data. Despite a significant reduction in interest rates by the Reserve Bank, loan withdrawals by industries have been slow.

Credit to large enterprises declined by 4.50 per cent, but credit to medium enterprises grew by 12.50 per cent in October. In October 2017, lending to the industrial sector grew by 2.50 per cent.

Lending to the agriculture sector, which has been good in the monsoon this year, has increased by an impressive 6.50 per cent, as against 8.10 per cent in October last year.

The growth rate of personal loans was 5.50 per cent in the same month of the current year as against 18.50 per cent in October 2016. Vehicle loans are also on the rise due to the increase in vehicle sales at the village level. Vehicle loans have seen an increase of 2.50%.

Overall lending growth, which stood at 7.50 per cent in October 2016, has slowed to 7.50 per cent in October this year, according to RBI data.