Growth in bank credit to non-food sectors picked up pace in September with loans to non-banking finance companies leading the expansion, Reserve Bank of India data show.

Total outstanding non-food credit of banks was Rs 67.56 trillion as of 30 September, up 11.5% from a year earlier, the RBI data show. 

This increase is significant given that the total credit outstanding had stayed between Rs 65.47 trillion and Rs 65.57 trillion since March.

The RBI data show also that credit outstanding to industry rose after falling for three months. Within industry, loans to micro, small and medium enterprises rose faster than those to large units. 

In the services sector, credit to NBFCs rose at the fastest pace sequentially. On an annual basis, outstanding credit to NBFCs surged 25% to Rs 3.7 trillion while credit to professional services climbed 32.7% to Rs 1.2 trillion.

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