Bank credit growth was 17% during year up to April 23: RBI

Bank credit growth was pegged at 17 per cent during the one-year period ending April 23, down from 17.4 per cent a year ago, the central bank said today.

As on April 23, bank credit stood at Rs 33.09 lakh crore. In absolute terms, credit expansion was nearly Rs 5 lakh crore, RBI said in a statement.

During the year ending April 23, 2009, bank credit stood at Rs 28.28 lakh crore. This translated into a 17.4 per cent growth on an annual basis.

The RBI, in its annual monetary policy, said it estimates that credit will grow by 20 per cent in the current fiscal (2010-11).
    
"The growth in non-food credit of banks is placed at 20 per cent. As always, these numbers are provided as indicative projections and not as targets," the RBI had said.
    
Experts believe that credit growth is expected to pick up moderately in the coming months, as infrastructure spending will go up.
    
"I expect credit growth to inch up gradually in the coming months. This is mainly due to an increase in investment in infrastructure and other related activities. I expect credit to grow by 20-22 per cent in the current fiscal," ratings agency Crisil Principal Economist D K Joshi said.