New Delhi, Mar 1 (KNN) The bank credit flow to India’s Micro Small and Medium Enterprise (MSME) sector increased by 5.1% in January 2019 as compared to 1.1% during the same period last year, indicating improvement in bank advancing loans to these units, according to data release by Reserve Bank of India (RBI).

As per the data, the major improvement has shown in the medium sector, where credit to medium enterprises grew to 7% during the period January 2018 to January 2019 from -6.3% during the period January 2017 to January 2018. While, large enterprises saw a 6.1 percent rise in bank credit supply over last year.

Credit growth to infrastructure, chemical and chemical products, all engineering, food processing and petroleum, coal products & nuclear fuels accelerated. However, credit growth to basic metal & metal product, textiles, and gems & jewellery contracted.

Under the priority sector, credit to Micro and Small Enterprises increased marginally from 10.2% in Jan 2018 to 11.1% in Jan 2019.

On a year-on-year basis, non-food bank credit increased by 13.1 per cent in January 2019 as compared with an increase of 9.5 per cent in January 2018. Also, Credit to agriculture and allied activities increased by 7.6 per cent in January 2019 as compared with an increase of 9.4 per cent in January 2018.

Credit to the services sector expanded by 23.9 per cent in January 2019 as compared with an increase of 13.2 per cent in January 2018.

Personal loans increased by 16.9 per cent in January 2019 as compared with an increase of 20.0 per cent in January 2018.

However, negative growth witnessed in leather and leather products, while credit to wood and wood products increased .(KNN/YV)