Credit offtake improves to 13.5%

The credit growth of banks stood at 13.5 per cent for the fortnight ended January 15 compared to 22 per cent in the same period a year ago.

However, this is higher compared to previous fortnights. For the fortnight ending January 1, credit offtake rose by 13.34 per cent at Rs 29,95,396 crore compared to Rs 26,42,774 crore in the year-ago period, while it was over 10 per cent for the two previous fortnights.

According to data released by the Reserve Bank of India today, credit offtake increased by 13.5 per cent at Rs 29,85,834 crore during the January 15 fortnight, as against Rs 26,30,838 crore in the year-ago period.

In absolute terms, the credit expansion was to the tune of Rs 3,54,996 crore.

According to analysts, credit offtake should improve in the remaining months of the current fiscal with a pick-up in industrial growth.

"Credit growth is likely to rise in the coming months with the economic activities increasing. I expect it around 15 per cent by March," rating agency Crisil Principal Economist D K Joshi said.

According to HDFC Bank Chief Economist Abheek Barua, credit growth is likely to rise to 15-16 per cent by March.