Bank credit decline continues- RBI weekly statistical supplementBank credit decline continues- RBI weekly statistical supplement
Apnaloan.com Research Bureau
09 May 2008
According to the weekly statistical supplement of the Reserve Bank of India (RBI), the bank credit for the period 10-25 April, 2008 was down by Rs. 11,964 crore.
This is a continuation of the trend wherein the bank credit declines in the first quarter of a financial year which begins in March.
One of the reasons for the decline is the huge build-up in loans that takes place in the last fortnight of every fiscal (March end).
Bank loans are growing at 23 per cent year-on-year and match the deposit growth which is currently at almost the same level.
RBI had projected a growth of 20 per cent in credit and 17 per cent in deposits in this fiscal, 2008-09. These projections are in line with the lowered growth expectations of money supply at about 17 per cent in this fiscal compared to about 21 per cent last fiscal.
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