The Hindu Business Line : Non-food credit up Rs 52,360 cr

Mumbai, July 11 Net bank credit increased by Rs 48,654 crore, to touch Rs 24, 13,071 crore, as on June 27, according to the data from the Reserve Bank of India.

The total bank credit comprised food credit, which fell by Rs 3,706 crore to touch Rs 50,636 crore and non-food credit which increased by Rs 52,360 crore to touch Rs 23,62,434 crore.

According to bank officials, the huge rise in bank credit is partly due to borrowing by oil companies.

“Although oil companies had other windows to raise funds, such as the special open market operations, they have borrowed heavily to meet the increased costs on account of high oil prices,” said an official from a public sector bank.

This being the end of the first quarter of the fiscal, there were lot of disbursements, which also could have added to the increase in credit, the official said.

“As we approach the end of a quarter, usually there is some momentum in the system, which is probably reflected in the credit offtake,” he said.

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