As per the RBI release, credit extended by banks registered a growth of 12.44% to Rs 86131.64 billion during the fortnight period till July 20. In contrast, in the year-ago period, the banking industry witnessed bank credit of Rs 76598.98 billion.
During the reporting period, the growth in advances was comparatively lower than the increase recorded in the previous fortnight to July 6, when loan book at banks grew by 12.78 per cent to to Rs 86600.69 billion.
Further as per the data, deposits registered an increase of 8.15% to Rs 114381.21 billion in comparison to Rs 105756.15 billion recorded in the year-ago period. The pace of growth in deposits was however lower than the previous reporting period that ended on July 6 with growth at 8.33% to Rs 114857.68 billion.
During the reporting period, loan extended to industry also grew by 0.9% against a contraction of 1.1% in June 2017.
Also, the non-food bank credit increased at a double-digit rate of 11.1% in comparison to 4.8% rise in the similar period a year ago. Personal loan segment also grew at 17.9% during the month in comparison to an increase of 14.1% in the same month last year.
However, loans to agriculture and allied area registered a decline of 6.5% in the month of June against an increase in credit off-take to the segment by 7.5% in the corresponding month in the year ago period.
The banker to the bank in a release said, "Credit to major sub-sectors such as textiles, all engineering, food processing, chemical and chemical products, and cement and cement products accelerated".
The loans to the service sector also surged by 23.3% in comparison to an increase of just 4.7% in June last year.