Bank deposits and credits increase for Q1' 06-07: RBI report

Mumbai, July 24 (UNI) The Reserve Bank of India in its first quarter review of 2006-07 has reported that the bank deposits and credits have recorded strong growth during the first quarter of 2006-07.

The Bank deposits and credit have increased by Rs 66,268 crore and Rs 40,789 crore, respectively, during the fiscal year 2006-07 so far (between March 31, 2006, and July seven, 2006) as compared to Rs 20,386 crore and Rs 26,053 crore, respectively, during the corresponding period of 2005-06 (between April 1, 2005 and July eight, 2005), added the quartely report.

Also, the scheduled commercial banks' non-food credit, on a year-on-year basis, registered a growth of 32.9 per cent as on July 7, 2006 on top of a high base of 31.0 per cent a year ago.

Monetary and liquidity conditions, after some tightening during the last four months of 2005-06, remained comfortable during the first quarter of 2006-07 despite sustained growth of bank credit, the report said.

Money supply (M3) expanded by 18.8 per cent on a year-on-year basis as on July seven, 2006, as compared with 13.8 per cent a year ago.

Also the reserve money expanded by 16.0 per cent on a year-on-year basis as on July 14, 2006, as compared with 18.0 per cent a year ago, the report added.

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