Personal loan grows up in December

Personal loans increased 15.8 per cent in December 2013 on a year-on-year basis, compared with a rise of 13.8 per cent in December 2012, according to Reserve Bank of India data released on Thursday.

On a year-on-year basis, non-food bank credit increased by 14.8 per cent in December 2013, compared with the increase of 14.3 per cent in December 2012, RBI data on sectoral deployment of bank credit for December 2013 noted.

However, credit growth in the industrial sector has slowed due to sluggish economic growth. Credit to industry increased by 14.1 per cent in December, compared with the 15.2 per cent increase in December 2012.

There was deceleration in credit growth in cement and cement products, infrastructure, metals and metal products, gems and jewellery, mining and quarrying, and petroleum, coal products and nuclear fuels.

Credit to non-banking financial companies increased by 15.1 per cent in December 2013, compared with the increase of 16.5 per cent in the same month in the previous year.

The data also showed that bank credit to the services sector increased by 17.4 per cent in December 2013, compared with a 10.9 per cent increase in December 2012.

Credit to agriculture and allied activities rose by 11.5 per cent in December 2013, compared with an increase of 18.3 per cent in December 2012.