Credit offtake growth slows to 9.8%

The government today said credit growth from banks has slowed down to 9.8 per cent till November 6 in the current fiscal against 27.7 per cent in the corresponding period a year ago.

"According to information available up to November 6, 2009, credit offtake from banks on year-on-year basis increased by 9.8 per cent as compared to 27.7 per cent during the corresponding period last year," Minister of State for Finance Namo Narain Meena said in a written reply to a Rajya Sabha query.

As per the Reserve Bank of India (RBI), the benchmark prime lending rates (PLR) reduction during October 2008-November 2009 was 125-275 basis points for public sector banks, while the same was in the range of 100-125 basis points for private sector banks and 125 basis points for foreign banks.

Though the credit growth was positive in most of the sectors, it was lower compared to last year.

However, Meena said, "Credit flow to agriculture and micro and small enterprises was higher in both absolute and percentage terms compared to last year."

The deceleration in credit growth during the current year was mainly due to the manufacturing sector and oil marketing companies, he said.