Govt expects credit offtake to pick up soon

Credit offtake was expected to pick up in the coming months on the back of policy steps taken by the Reserve Bank of India (RBI) to boost credit growth, Minister of State for Finance Namo Narain Meena said today.

“The RBI has been taking necessary steps through its monetary policy to provide an enabling environment for credit growth. With increase in economic growth, including growth in manufacturing sector, credit growth is expected to pick up further in the coming months,” Meena said in a written reply in Rajya Sabha. In the fortnight ended November 20, bank loans were up Rs 7,057 crore, RBI data showed. Bank loans were up 10.1 per cent on year compared with 27.0 per cent a year ago.

India’s gross domestic product growth posted a steep 7.9 per cent rise in July-September, up from 7.7 per cent a year ago, and 6.1 per cent a quarter ago. Following the data, the RBI has said there is a possibility of an upward revision in its growth projection of 6.0 per cent with an upside for 2009-10.