Signs Of Recovery In Credit Offtake

The fund-flushed banking system saw a faint sign of recovery in credit offtake in the last quarter of fiscal 2002.

The RBI report points out that credit to the commercial sector went up by Rs 33,676 crore in the period. Bank credit to the commercial sector has continued to rise in this fiscal as well, showing a growth of 19.1 per cent till August 9, 2002, as compared with 13.8 per cent in the corresponding period last year.

The sharp increase in bank credit to the commercial sector during the current fiscal reflects the accounting effect of the impact of mergers since May 3 on the assets and liabilities of the banking system, the RBI annual report said.