Credit to industry has contracted 0.4 per cent in the first half of this financial year, as banks grapple with bad loans. The loan outstanding to industry, comprising micro, small, medium and large companies, was Rs 26.4 lakh crore, as against Rs 26.52 lakh crore in the year-ago period. While the micro and small industries witnessed some growth in loans, credit to medium and large industries contracted. Credit to large industries at the end of September was at Rs 21.7 lakh crore, as against Rs 21.78 lakh crore a year ago. In the year-ago period, credit to industry had increased 0.9 per cent against September 2015 level, RBI data showed on Tuesday. About 36.6 per cent of the total loan outstanding of Rs 72.07 lakh crore was given to industry by the end of September. Credit growth to major sub-sectors such as infrastructure, engineering and vehicles, vehicle parts and transport equipment contracted. However, credit growth to basic metal and metal products, ‘textiles and food processing increased, the report stated. Credit to the services sector increased by 7 per cent in September, down from the increase of 18.4 per cent a year ago. Personal loans increased by 16.8 per cent in September 2017 vis-à-vis the increase of 19.7 per cent in the same period a year ago. In personal loans, credit card outstanding rose 38.7 per cent year-on-year to Rs 59,900 crore in September. Priority sector loans increased only 3.7 per cent in the same period, while agriculture loans increased 6 per cent.