Credit to micro, small and medium industries, however, continued to expand at a robust pace. Among major industries, outstanding credit to engineering, vehicles and auto parts, rubber and plastic products, and gems and jewellery recorded healthy growth.
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Caution across the board
Bank credit to the services sector grew 10.6% in July, lower than the 14.5% growth recorded in the same period last year.Growth in credit to non-banking financial companies decelerated sharply to 2.6% year-on-year, while lending to professional services, commercial real estate and trade segments remained strong, the data showed.
Banks also remained cautious on the personal loan segment, which saw growth moderate to 11.9% year-on-year compared with 14% a year earlier, largely due to slower growth in other personal loans, vehicle loans and credit card outstanding.Credit to agriculture and allied activities grew 7.3% in July, significantly lower than the 18.1% growth seen in the previous year.
Overall, non-food bank credit expanded 9.9% year-on-year as of July 25, compared with 13.6% during the corresponding period last year.