The growth rate of credit in industry and service sector remained high in February

Mumbai: Retail credit growth slowed in February after the Reserve Bank of India raised the risk weight for retail loans given the risk of default, while industry and services sector growth remained strong.

According to Reserve Bank data, overall credit demand remained strong last month. The growth rate of retail credit in February was 18.10 percent which was seen at 20.60 percent in February last year.

The distribution of vehicle and personal loans has slowed down. According to Reserve Bank data, non-food bank credit grew by 16.50 per cent year-on-year, compared to 15.90 per cent in February last year.

Credit to the real estate sector has seen a four-fold increase, while loan disbursement to the service sector has also picked up. Industry credit growth has also been high.

Credit to the service sector has seen an increase of 21.20 percent. Credit to the commercial real estate sector has increased by 37.90 per cent, up from 8.90 per cent in February last year.

Credit to industry has seen a year-on-year growth of 8.60 percent while credit to agriculture and allied sectors has seen a growth of 20.10 percent.