Bank credit expanding at a strong pace: RBI

Mumbai, Oct 23 (UNI) The Reserve Bank of India today indicated that the Bank credit in India was expanding at a strong pace with increase in non food credit by scheduled commercial banks (SCBs) by 29.3 per cent (Rs 5,80,060 crore), y-o-y, as on October 10, 2008 as compared with 23.3 per cent (Rs.3,74,054 crore) a year ago.

The higher credit growth relative to the deposit growth resulted in an increase in the incremental credit deposit ratio (y-o-y) of SCBs to 96.2 per cent as on October 10, 2008 from 66.8 per cent a year ago, the Apex Bank said in a document on the macroeconomic and monetary developments in the country a day head of the mid term review of its annual policy statement.

Up to October 10, 2008), non-food credit expanded by 10.4 per cent (Rs 2,40,995 crore) as compared with 5.0 per cent (Rs. 93,781 crore) during the corresponding period of the previous year, the RBI said.

Disaggregated sectoral data available up to August 29, 2008 showed that about 45 per cent (Rs 2,18,246 crore) of incremental non-food credit (y-o-y) was absorbed by industry as compared with 40 per cent (Rs 1,43,614 crore) in the corresponding period of the previous year. The agricultural sector absorbed around eight per cent (Rs 40,913 crore) of the incremental non-food bank credit expansion as compared with 13 per cent (Rs 44,360 crore) in the corresponding period of the previous year. Personal loans accounted for nearly 17 per cent (Rs 81,729 crore) of incremental non-food credit; within personal loans, the share of incremental housing loans was at 40 per cent (Rs. 32,792 crore).

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