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Mumbai, July 1 Banks are pushing credit in a big way with scheduled commercial banks collectively lending Rs 13,090 crore in the fortnight ended June 15. Bankers attribute this push to quarter-end considerations whereby banks bulk up their lending portfolio. In the preceding fortnight too, banks had collectively lent Rs 22,029 crore.

“It is a typical quarter-end phenomenon whereby corporates take advantage of banks’ desperation to build their loan portfolio. Almost 60-70 per cent of lending by banks towards every quarter-end is short-term in nature,” said a senior public sector banker.

Because of the government’s aggressive push to its borrowing programme, SCBs’ investment in the reporting fortnight was Rs 18,092 crore vis-À-vis Rs 18,856 crore in the preceding fortnight.

With banks cutting interest rates on deposits by 25-50 basis points since the beginning of June, SCBs’ deposits in the reporting fortnight were down by Rs 4,792 crore as against an accretion of Rs 6,116 crore in the preceding fortnight.

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