Priority sector Bank lending grows lower in Sept 2011

Bank lending to the priority sector grew at a lower rate of 11.1 percent in September 2011, against the growth of 19.1 percent in

the same month last year, on account of lower offtake by agriculture and housing segments and fall in micro credit. According to the Reserve Bank of India data, credit disbursement to the priority sector stood at 12.4 lakh crore rupees in September.

During the month, bank disbursements to agriculture and allied activities went up by only 7.9 percent, to 4.3 lakh crore rupees. Similarly, growth in offtake by housing segment slowed to

6.1 percent, at 2.4 lakh crore rupees.

But Micro credit witnessed a decline of 4 percent during the month under review, to 22,480 crore rupees. Micro credit had grown by 27 per cent in the same period last year.