Growth of the lending by Banks to the Priority sector has come down drastically in December 2011.The growth is just 5% in December 2011 YOY as against 29% YOY growth seen in December 2010. This is the lowest rate of growth to the Priority sector in the current fiscal year. Loan to Agriculture and allied activity has grown by 5.6% as against 25% seen in December 2010.Loan to MSME sector has also come down drastically .This ector has seen growth of 11% only as against 30% growth seen in December 2010.Micro Credit segment has shown degroth of 27% which had seen growth of 52% in December 2010. Loan to Housing sector has grown marginally by 2.3% as against 11% growth seen in December 2010.Commercial Banks are witnessing high NPA in priority sector lending due to which RBI has set up a committee to give suggestion. Overall Credit growth has moderated to 16% in December 2011 due to low Credit off take in Infra, Retail & SME space.
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