The Hindu Business Line : Bank credit dips by Rs 141 cr

Bank credit dipped by Rs 141 crore during the fortnight ended April 30, 2004, to touch Rs 8,65,080 crore, as per the latest Reserve Bank of India (RBI) statistics.

This is inclusive of food credit, which increased substantially by Rs 4,672 crore to Rs 42,998 crore and non-food credit, which declined to Rs 8,22,083 crore.

During the fortnight ended April 16, 2004 (i.e.) the first fortnight of the current financial year, gross bank credit went down by Rs 2,215 crore, mainly led by a Rs 3,568-crore dip in non-food credit and while food credit grew by Rs 1,353 crore.

Banking analysts attributed the fall in non-food credit to the unwinding of short-term advances given towards the end of the last fiscal for `window-dressing'.

According to the Weekly Statistical Supplement, loans and advances provided by the RBI to the Central Government during the week ended May 7, 2004, declined by Rs 245 crore.

Total accommodation provided by scheduled commercial banks to the commercial sector in the form of bank credit and investments in shares, debentures, bonds and commercial papers, increased by Rs 20,896 crore to touch Rs 9,09,365 crore.

Year-on-year money supply was at 15.9 per cent.

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Bank credit dips by Rs 141 cr