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Non-food credit grows at Rs 97.32 trn, highest since demonetisation: RBI

The higher growth in advances comes at a point when 11 banks are under RBI's PCA framework, which restricts them from fresh lending

Press Trust of India  |  Mumbai 

Bank credits: Infra, power sectors continue to get lion's share, says RBI

Total credit flow from banks to the commercial sector grew at 15.6 per cent year-on-year at Rs 97.32 trillion in the fortnight ended November 9, 2018, the highest growth since demonetisation, according to an RBI data.

The adjusted non-food stood at Rs 84.22 trillion in the year-ago fortnight.

Adjusted non-food includes non-food and total non-statutory liquidity ratio (SLR) investments of banks in commercial papers, shares and bonds/debentures.

Bank credit was lowest during the November 2016 to March 2017 period, following the government's move to demonetise high-value currency notes on November 8, 2016.

During the reporting fortnight, the grew by 15.12 per cent to Rs 90.51 trillion, while the total non-SLR investments rose 22.26 per cent to Rs 6.81 lakh crore as against Rs 5.57 trillion, the data showed.

"The growth in banks credit flow shows corporates today are able to raise enough credit from the source. There are no constraints and bottlenecks in raising resources from banks," said a senior banker from a

The higher growth in advances comes at a point when 11 banks are under RBI's prompt corrective action (PCA) framework, which restricts them from fresh lending, said a analyst.

Out of the 21 state-owned banks, 11 lenders which are under PCA include Allahabad Bank, United Bank of India, Corporation Bank, IDBI Bank, UCO Bank, Bank of India, Central Bank of India, Indian Overseas Bank, Oriental Bank of Commerce, and

First Published: Tue, November 27 2018. 19:25 IST
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