Sluggish flow of credit into the textiles and infrastructure sectors held back the growth of bank loans to the industrial sector during May this year, as compared to the same month in 2011.
As per the Reserve Bank of India’s (RBI) latest statistics, loans to the textile sector till May 20 this year registered a year-on-year growth rate of just 7 percent, significantly below the 20.7 percent growth rate registered during the corresponding period of last year.
New loans to the textile sector plunged by 2.6 percent in May as compared to April this year. Credit flow to the industry soared by 18.8 percent in May, as compared to credit flow of 26.7 percent in May 2011.
RBI mainly attributes the slowing in credit growth to deceleration of bank loans to the textiles and infrastructure sectors.
Fibre2fashion News Desk - India