The Hindu Business Line : Bank credit up Rs 16,522 cr

BANK credit has increased by Rs 16,522 crore for the fortnight ended October 3; this is perhaps the largest increase in a single fortnight since the start of this fiscal. However the rate of increase is only at 3.1 per cent, much lower than the rate of 14.6 per cent observed in the previous fiscal.

According to the latest figures released by the central bank, for the fortnight ended October 3, the bank credit has touched a cumulative of Rs 7,52,068 crore with a jump in non-food credit by Rs 16,615 crore to a cumulative of Rs 7,14,696 crore while there has been a small dip in food credit by Rs 93 crore to a cumulative of Rs 37,372 crore.

Some of this increase could be the result of banks attempting to push credit numbers towards the end of the second quarter. This kind of window dressing at the end of every quarter is typically observed in the banking industry. The growth of retail finance is certainly contributing to these number too, say bankers.

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Bank credit up Rs 16,522 cr