MONETARY POLICY

Monetary policy refers to the use of monetary instruments under the control of the central bank to regulate magnitudes such as interest rates, money supply and availability of credit with a view to achieving the ultimate objective of economic policy.


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Date : Apr 30, 2020
Sectoral Deployment of Bank Credit – March 2020

Data on sectoral deployment of bank credit collected from select 39 scheduled commercial banks, accounting for about 90 per cent of the total non-food credit deployed by all scheduled commercial banks, for the month of March 2020 are set out in Statements I and II.

Highlights of the sectoral deployment of bank credit are given below:

  • On a year-on-year (y-o-y) basis, non-food bank credit growth decelerated to 6.7 per cent in March 2020 from 12.3 per cent in March 2019.

  • Credit growth to agriculture & allied activities decelerated to 4.2 per cent in March 2020 from 7.9 per cent in March 2019.

  • Credit growth to industry decelerated to 0.7 per cent in March 2020 from 6.9 per cent in March 2019. Within industry, credit growth to ‘beverage & tobacco’, ‘mining & quarrying’, ‘petroleum, coal product & nuclear fuels’ and ‘rubber, plastic & their products’ accelerated. However, credit growth to ‘chemicals & chemical products’, ‘cement & cement products’, ’construction’, ‘all engineering’, ‘glass & glassware’, ‘gems & jewellery’ and ‘infrastructure’ decelerated/contracted.

  • Credit growth to the services sector decelerated sharply to 7.4 per cent in March 2020 from 17.8 per cent in March 2019.

  • Personal loans growth decelerated moderately to 15.0 per cent in March 2020 from 16.4 per cent in March 2019.

Ajit Prasad
Director   

Press Release: 2019-2020/2298


1 Data for March 2020 have been revised in light of modified returns submitted by two banks.


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