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Bank credit for the fortnight ending May 20 declined by Rs 5,271 crore to Rs 39,52,113 crore for the fortnight ending May 20 from Rs 39,57,384 crore in the preceding fortnight.
According to bankers a slowdown in credit off-take is typically seen in the first quarter of the fiscal. “The first half of the fiscal is the lean season and, hence, demand for credit is low,” said a bank official from a public sector bank.
The impact of rising interest rates and rising input prices may have also contributed to the slowdown, he added.
As compared to the last fiscal, credit has increased by Rs 7,19,963 crore or an increase of 22 per cent.
Bank deposits increased to by Rs 3,246 crore to Rs 53,19,255 crore, from Rs 53,16,009 crore during the fortnight. Investments by banks increased by Rs 13,304 crore to Rs 15,83,147 crore from Rs 15,69,843 crore during the fortnight.
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