Bank credit grows 25.3% in first 7 weeks of fiscal

The latest Reserve Bank of India (RBI) data showed that banks disbursed advances worth Rs 15,923 crore between April 1 and May 23, compared with a decline of Rs 47,469 crore during the corresponding period last year.

With the elevated prices of food items and commodities including crude oil, inflation measured by wholesale price index (WPI) grew 8.24 per cent during the week ended May 24, 2008. The recent fuel price hike is expected to take inflation near 9 per cent, if not higher.

Higher inflation and a near constant credit growth rate