As per a RBI report as against the contraction in credit to industries which stood at 3.4% last year, the month of November reported growth in credit off take to industrial units by 1% on the back of increased economic activity in the last half of the FY 18.
The central bank said, "Credit to major sub-sectors such as infrastructure, vehicles, vehicle parts and transport equipment, basic metal and metal products and mining and quarrying has declined. However, credit growth to textiles, chemical and chemical products, engineering, food processing and construction has accelerated".
Growth for large scale businesses is reported at 0.8% while MSME has recovered in business operations by 4.6% and the mid-sized businesses are reported to be slow on contraction to 8.3%.
Non-food credit increased to Rs. 71 lakh crore up 8.8% against 4.8% credit growth in the year ago period. At the same time, housing and personal loans also increased to 17.3% and 13.1%.
Credit to the priority sector in total jumped by 7.1% while to the agricultural and allied sectors and services sector grew by 8.4% and 7.1% respectively.