Bank credit offtake increases by 15%

Credit offtake of banks for the fortnight ended June 5 increased by 15.1 per cent to Rs 28 lakh crore.

While, outstanding loans increased to Rs 28,39,203 crore for said period, from Rs 24,66,762 crore in the corresponding period a year ago.

During the same period, food credit grew by 20 per cent to Rs 59,107 crore from Rs 49,237 crore same period last year, as per the provisional data released by the RBI.

Canara Bank Chairman and Managing Director A C Mahajan said, so far credit offtake is stable as the first quarter is generally a slack season for advances.

 

At the same time, deposits grew by 20 per cent at Rs 40,98,769 crore against Rs 33,58,780 crore.

According to annual monetary policy for 2009-10, "Money supply (M3) growth for 2009-10 is placed at 17 per cent. Consistent with this, aggregate deposits of scheduled commercial banks are projected to grow by 18.0 per cent."

The growth in adjusted non-food credit, including investment in bonds or shares of public sector undertakings and private corporate sector and CPs, is placed at 20 per cent, it had said.

Given the wide dispersion in credit growth noticed across bank groups during 2008-09, banks with strong deposit base should endeavour to expand credit beyond 20 per cent, it added.