Bank credit up 22.8%
Bank credit up 22.8% The credit disbursed by scheduled commercial banks grew 22.8% (Rs 3,638.58 billion) on a Y-o-Y basis as on Aug. 31, 2007. The total disbursements as on this date were Rs 19,600.72 billion, reported RBI in its weekly statistical supplement of Sep. 14, 2007. Bank credit grew 31.5% in the corresponding period of 2005-2006. Thus, the growth in credit has reduced remarkably for the week ended Aug. 31, 2007, implying that RBI`s stand of tightening the monetary policy churned out desirable results. The credit to the food sector increased by Rs 19.61 billion as on Aug. 31, 2007 over Aug. 30, 2006. Out of the total disbursement, an amount of Rs 384.90 billion was allocated to the food sector. The balance sum of Rs 19,215.82 billion was allocated to the non-food sector. As on Aug. 31, 2007, the credit-deposit ratio stood at 70.71%, while the cash-deposit ratio and investment-deposit ratio were 8.60% and 32.64% respectively.
