Credit off-take remains subdued in 2009

Written by fe Bureau | Mumbai | Updated: Jan 1 2010, 03:16am hrs
The banking industry has seen a marginal incremental growth in credit offtake. On year-on-year basis as on December 18, 2009, bank credit, excluding interbank advances, went up 11.2% to Rs 29,41,293.07 crore from Rs 26,43,733.94 crore.

According to a data from the RBI, credit growth stood at 10.5%, or Rs 2,77,479 crore, as on December 4, 2009, on year-on-year basis.

During the fortnight ended December 18, 2009, bank credit, excluding inter-bank advances, surged 0.74% to Rs 29,41,293.07 crore from Rs 29,19,700.33 crore.

However, the deposits mobilisation by the banks have fallen as the banks have reduced deposit rates.

During the fortnight ening December 18, 2009, deposits, other than from banks, went up by 17.8% to Rs 41,81,771.25 crore from Rs 35,48,474.89 crore.

During the fortnight, bank loans have gone up by Rs 20,937 crore for the two weeks ended December 4, 2009, thereby taking outstanding advances to Rs 29,19,700 crore. Deposits grew 18.33%, or Rs 6,51,064 crore, during the same period. The outstanding deposits at the end of December 4, 2009, stood at Rs 42,03,645 crore as against Rs 41,85,923 crore.

The RBI had noted during the policy that credit growth is unlikely to meet 20% target and had projected a growth of 18% for the same. At the same time, aggregrate deposits of scheduled commercial banks are projected to grow by 18%.