MUMBAI: The latest data released by the Reserve Bank of India on ‘Deployment of Gross Bank Credit by Major Sectors’ on Friday showed bank credit to the liquidity-strapped non-banking finance companies (NBFC) jumped 55 per cent on year to Rs 5.6 lakh crore. RBI announced a series of steps to push credit to the NBFC industry following the IL&FS crisis and liquidity crunch.
One of the major contributors to the increase in bank credit to the NBFCs could be the NBFC asset purchase the banks announced. State Bank of India had announced Rs 45,000 crore NBFC loan portfolio purchase and by October had bought Rs 5,250 crore with Rs 15,940 crore in the pipeline. Gross credit growth in October was at 13.1 per cent and non-food credit growth as 13.4 per cent, RBI statement showed.
Credit to agriculture and allied activities increased by 8 per cent as compared with 5.5 per cent a year ago. Services sector credit expanded by 27.4 per cent in October as against 9.4 per cent last year, and personal loans rose showed a marginal increase at 16.8 per cent this year compared with 16 percent last year. Among the priority sector loans micro credit saw the maximum growth at 38.6 per cent. Educational loans contracted by 3.6 per cent to Rs 568 billion.