Growth in Credit to Priority Sectors Dips 11.1%.

Bank lending to the priority sector grew at a lower rate of 11.1 per cent in September, against that in same month last year, on account of lower offtake by agriculture and housing segments and fall in micro credit.

Credit offtake by the priority sector had grown by 19.1 per cent year-on-year in September last year.

Credit disbursement to the priority sector stood at Rs 12.45 lakh crore in September, compared to Rs 11.20 lakh crore in the same month last year, according to the Reserve Bank of India data.0

In September, bank disbursements to agriculture and allied activities went up by a mere 7.9 per cent to Rs 4.33 lakh crore. In September 2010, credit disbursement to the segment had gone up by 19.3 per cent on an annual basis.

Similarly, growth in offtake by housing segment slowed to 6.1 per cent at Rs 2.38 lakh crore in September. Bank credit disbursement to the sector had increased by almost 9 per cent per cent in September last year.

Source : indianexpress.com