Banks non-food credit growth slows to 5.3% in July

Credit to agriculture and allied activities moderated to 6.8 per cent in July 2017, lower than the increase of 13.4 per cent in July last year.

Personal loans rose by 15 per cent in the month, lower than the increase of 18.8 per cent in the year-ago period.

Loans to industry contracted by 0.3 per cent in contrast with an increase of 0.6 per cent last year.

"Credit growth to major sub-sectors such as infrastructure, basic metal and metal products, textiles, petroleum, coal products and nuclear fuels and all engineering witnessed contraction/deceleration," RBI said in a release here today.

However, loan growth to construction, cement and cement products, rubber, plastic and their products and beverage and tobacco accelerated.

Advances to the services sector increased slowed by 4.9 per cent lower than the increase of 10.8 per cent in July 2016, the data showed.