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| Bank credit grows by Rs 13,000 crore |
| BS Reporter / Mumbai Jul 02, 2009, 02:10 IST |
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Credit offtake by banks picked up for the second fortnight in a row, rising by Rs 13,005 crore in the first half of June. During the fortnight ended June 5, the growth was Rs 21, 460 crore.
According to latest data by the Reserve Bank of India (RBI), outstanding bank credit stood at Rs 27,70,216 crore on June 19, 2009, as against Rs 23,93,239 crore a year ago.
However, growth in advances is better than the credit offtake during the same fortnight last year. The loans had grown by Rs 12,030 crore during the fortnight ended June 20, 2008.
On a year-on-year basis, bank credit grew 15.75 per cent, which shows that the growth is still subdued. Bankers attributed the rise to increase in drawals or use of credit lines which were sanctioned earlier. They said the demand was mainly from the infrastructure sector.
Andhra Bank Chairman and Managing director RS Reddy said credit disbursement was happening now. “Normally, the first quarter is a season where credit offtake is subdued, but we will have positive figures, meaning that outstanding credit at the end of June will be more as compared with at the end of March,” he said.
During the fortnight, deposits declined Rs 5,502 crore at the end of June 19, 2009. The growth was 21.95 per cent on a year-on-year basis to Rs 39,66,148 crore as against Rs 32,52,142 crore in the corresponding period a year ago.
Banks’ investments in government securities went up by Rs 17,369 crore during the fortnight.
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