Credit offtake to pick up from next fiscal: ICICI

The country's largest private sector lender, ICICI Bank, today said it expects credit offtake to pick up from the next fiscal.

"I think the credit pick up will really take place in the next fiscal year because the pick up on credit for projects come with a lag," ICICI Bank Chief Executive Officer and Managing Director Chanda Kochhar told PTI.

For the fortnight ended February 12, the credit growth of banks rose by 14.6 per cent to Rs 30.25 lakh crore compared to the year-ago period when it grew 19.5 per cent.

However, this growth was the highest compared to few previous fortnights.

Talking about impact of tax proposals on inflation, she said that changes in excise and customs duties are easily absorbable in the course of time.

"Not only the fact that some of the stimulus is not only inherent, it is inherent in the form of states pay commission. Small gradual change in excise and customs duty is easily absorbable," she said.

As part of the Budget proposals of 2010-11, the government hiked customs duty on petrol and diesel to 7.5 per cent from 2.5 per cent while excise duty was raised by Re one on non-branded (normal) petrol and diesel.

Beginning February 27, petrol prices rose by Rs 2.67 a litre and diesel by Rs 2.58 per litre in Delhi.

Petrol, in Delhi currently costs Rs 44.72 a litre and diesel Rs 32.92 per litre.

After the Budget, Finance Minister Pranab Mukherjee had said that increase in excise duty would result in inflationary impact of 0.41 per cent on the wholesale price index.

Wholesale price inflation stood at 8.56 per cent for January-end, beating RBI's projections of 8.50 per cent by the end of the current fiscal.