June 2013 Gross Bank Credit grows at 13.1%

June 2013 Gross Bank Credit grows at 13.1%

On a year-on-year basis, gross bank credit increased by 13.1% in June 2013 as compared with 14.8% in May 2013. Food credit increased by 3% in June 2013 as compared with 9% in May 2013 and non-food bank credit increased by 13.4% in June 2013 as compared with 14.9% in May 2013.

The credit to NBFCs increased by 1.9% in June 2013 as compared with 2.8% in May 2013. The credit to agriculture increased by 9.9% in June 2013 as against 11.2% in May 2013.

The gross bank credit stands at Rs. 51,019 billion as on June 2013 as compared to Rs.50, 605 billion as on May 2013.

  Monthly trend in growth of gross bank credit (%)                                                                           (YoY)

Source: PHD Research Bureau, compiled from RBI

Credit to industry increased by 14.1% in June 2013 as compared to 15.5% during May 2013. The deceleration in credit growth to industry in the month of June 2013 was observed in all the major sub-sectors, barring food processing, textiles,leather & leather products, cement & cement products & infrastructure.

The services sector credit increased by 12.1% in June 2013 as compared with 14.6% in May 2013. Personal loans increased by 15.6% in June 2013 as compared with 16.3% in May 2013. Growth in the components of personal loans in June 2013 stood at housing (17%), advances against fixed deposits (20.6%), advances to individuals against shares, bonds, etc. (8%), education (9.1%) and vehicle loans (24.2%).

  Deployment of Gross Bank Credit by major sectors                                                                   (Rs. Billion)

Sector	May 2013*	June 2013**	May 2013^ (Y-O-Y growth)	June 2013^^ (Y-O-Y growth)
			(%)	(%)
Gross Bank Credit	50605	51019	14.8	13.1
Food Credit	1158	1101	9.0	3.0
Non-food Credit	49447	49918	14.9	13.4
Agriculture & Allied Activities	6034	6051	11.2	9.9
Industry (Micro & Small, Medium and Large )	22593	22820	15.5	14.1
Services	11547	11699	14.6	12.1
Personal Loans	9273	9348	16.3	15.6
Priority Sector	16166	16105	16.3	14.7

Source: PHD Research Bureau, compiled from RBI

Note: Data are provisional and are collected on a monthly basis from select 47 scheduled commercial banks accounting for

 about 95% of the total non-food credit deployed by all scheduled commercial banks;

  * Data pertains as on May 31, 2013, ** Data pertains as on June 28, 2013, ^Data pertains as on May 31, 2013 over May 18, 2012

^^ Data pertains as on June 28,2013 over June 29, 2012

Warm regards,

Dr. S P Sharma