Banks' lending to core sector surges 52%

Banks' lending to infrastructure sector rose by 52.34 per cent on to Rs 56,709 crore as on March 2005 from Rs 37,224 crore a year earlier, according to the Reserve Bank of India's (RBI) Handbook of Monetary Statistics.

Of this, lending to roads and ports registered a phenomenal rise of 83.16 per cent to Rs 16,789 crore (Rs 9,161 crore), while credit to telecommunications grew by 54.09 per cent at Rs 12,956 crore (Rs 8,408 crore). Power sector received 37.23 per cent more credit in 2005 at Rs 26,973 crore (Rs 19,655 crore).

Next to infrastructure, gems and jewellery saw a 32 per cent increase in bank lending to Rs 12,123 crore (Rs 9,178 crore). Bank credit to drugs and pharmaceuticals firms rose by 23.15 per cent from Rs 8,667 crore in March 2004 to Rs 10,674 crore in 2005.

The other sectors which received a larger share of bank credit in 2005 against the previous fiscal, included food processing, cotton textiles, petroleum and iron & steel.

While credit advanced to cotton textiles grew by 16.57 per cent at Rs 20,011 crore (Rs 17,166 crore), that of petroleum grew 19.17 per cent to Rs 14,618 crore (12,266 crore).

Lending to food processing rose by 15.6 per cent to Rs 11,413 crore (9,872 crore) whereas credit to iron and steel increased by 10.38 per cent in 2005 to Rs 29,025 crore (Rs 26,295 crore).

On the other hand, loans disbursed to petrochemicals, jute textiles and computer software declined in 2005 compared with 2004 figures. Total bank credit advanced to software sector fell sharply by 21.9 per cent to Rs 2,367 crore against Rs 3,029 crore reported in 2004.