New Delhi, Nov 2 (KNN) The sectoral deployment of credit by the bank to the medium enterprises, which had fallen by huge -8.7 per cent in March 20, 2015 to September 18, 2015, has this time showed some improvement. During March 18, 2016 to September 30, 2016, the credit to the medium sector has fallen by -3.6 per cent.

According to data released by Reserve Bank of India, the Deployment of Gross Bank Credit by Major Sectors has gone up to 4 per cent which was just 1.6 per cent in the same period last year.

However, the overall credit to the Micro & Small, Medium and Large enterprises has further fallen by -2.9 per cent in March 18-September 30, 2016 from -1.1 per cent in March 20-September 18, 2015.

Meanwhile, the credit to Micro & Small sector, which was 5.1 per cent in September 19, 2014 to September 18, 2015 fell to -1.2 per cent in September 18, 2015- September 30, 2016.

During the same period, the credit to medium enterprises improved from -6.7 per cent to -2.6 per cent.

Under Priority Sector Lending, the credit deployment to MSEs has doubled to 3.0 per cent in 2016 from 1.5 per cent during same period last year.

However, during the September 19, 2014 to September 18, 2015 and September 18, 2015- September 30, 2016 period, the credit to MSE under PSL has fallen from 10.5 per cent to 7.5 per cent.

The data also shows that the Credit to the services sector increased by 18.4 per cent in September 2016 as compared with the increase of 5.9 per cent in September 2015.

Credit to industry increased by 0.9 per cent in September 2016 as compared with an increase of 4.9 per cent in September 2015.

Major sub-sectors which witnessed deceleration/contraction in credit include infrastructure, basic metal & metal products, food processing and chemical & chemical products. (KNN Bureau)