Deployment of credit to industries moderated in 2013-14, even as credit to agriculture and allied activities, services, and personal loans picked up. Gross bank credit deployment to medium and large industries has been comparatively lower in 2013-14. The credit flow to micro and small enterprises has, however, shown robust growth. Deceleration in credit growth has been observed in the mining, infrastructure, cement, coal, metals, and gems and jewellery sectors while in sectors such as food processing, construction, leather, rubber, glass, and paper, a pick-up has been witnessed.

Overall credit flow to industry increased by 14.9 per cent in 2013-14, lower in comparison with the 20.9 per cent growth achieved in 2011-12 and 17.8 per cent in 2012-13. Credit flow to mining remained near stagnant at 0.05 per cent during 2013-14. In keeping with the performance of the power sector during 2013-14, credit flow to the sector rose by 24.9 per cent over the previous year. Looking at the individual sector-level credit absorption, petroleum, chemicals and chemical products, basic metals, transport, and all engineering sectors showed lower growth in gross bank credit flow during 2013-14, as compared to the previous year mainly owing to the slowdown in these sectors.

Credit deployment to industries moderated while agriculture, services and small enterprise lending gained momentum. Bank credit deployment to industries moderated in 2013-14 with overall industrial credit growth lower than prior years, while credit to agriculture, services and personal loans increased. Medium and large industries saw comparatively lower gross bank credit, micro and small enterprises showed robust growth, mining credit was near stagnant, and the power sector registered a notable rise in lending. Several industrial subsectors including petroleum, chemicals, basic metals, transport and engineering experienced lower credit growth due to sectoral slowdowns.