Due to payment on account of 3G auction and advance tax payment the banking industry has recorded a 20.35% growth in its non-food credit to Rs 32,58,268 crore for the fortnight ended June 18, 2010.
The growth in non-food credit in percentage term is more than 55 basis points over 19.80% registered in the previous fortnight ending June 4.
According to the latest credit figures released by the Reserve bank of India (RBI), the total credit rose 19.60% y-o-y for the fortnight ending June 18, 2010 as against 19.12%% in the previous fortnight ending June 4 , 2010.
The total amount lent(credit (including non-food and food) by scheduled commercial banks is pegged at Rs 22,343 crore
The RBI has projected a total credit growth of 20% in 2010-11.
Bankers feel that credit is growing at an encouraging pace and most of them expect to achieve 22-25% credit growth in the current year.
Bank of India executive director M Narendra said, ?The current pace of growth is encouraging and banks should be experiencing good credit demand from corporates since industrial growth is clearly picking up. The 3G auctions too have contributed to the higher demand for credit. The retail segment seems to be contributing well to the expanding loan book.?
Central Bank of India CMD S Sridhar said, ?Although there has been fairly strong momentum in credit growth, it could gather pace.? Sridhar confirms that Central Bank has grown its loan book by about 19% so far this year and among the sectors that it has been lending to are automobiles and infrastructure. ?We have been experiencing a pick up in credit demand from the textile and retailing firms, too ? he said.
