Mumbai: Credit offtake from banks grew by 20.3 percent to over Rs 41 lakh crore during the one-year period ended 12 August, 2011, suggesting an upswing after a brief period of moderation. According to data from the Reserve Bank, credit offtake during the period stood at Rs 41.73 lakh crore as against Rs 34.67 lakh crore in the same period of the previous year. The latest rise signals a renewal in investments and industrial activity. The year-year credit growth has fallen below 19 percent since mid-July after growing above this level in the past few months. It grew by 18.7 percent only for the one-year period ended 29 July. Meanwhile, deposits went up to over Rs 56.44 lakh crore till 12 August this year, against Rs 47.83 lakh crore as on 13 August, 2010, clocking a rise of 18 per cent. In its first quarterly monetary review last month, the RBI had said that credit growth is likely to slow down as a result of the recent rate hikes. The RBI said credit growth would be around 17-18 percent this fiscal, as against the earlier projection of 19 percent, while deposit growth has been pegged at 17 percent. During 2010-11, bank credit had increased by 21.5 percent, while deposits grew by only 15.5 percent. India Inc has also complained that frequent rate hikes have resulted in slowing down of investments and industrial growth. While industrial production recorded a dismal growth of 5.9 percent and 5.6 percent in April and May, respectively, it went up by 8.8 percent in June. The Reserve Bank has hiked its key-policy rates three times this fiscal, and 11 times since March 2010, to curb inflation.
Firstpost
No comments:
Post a Comment