Reflecting increased off-take of credit across the board, bank credit rose to Rs47.5 lakh crore for the fortnight ending 7th September
Mumbai: Bank credit rose by Rs27,902 crore to Rs47.5 lakh crore in the fortnight ending 7th September reflecting an uptick in economic activity, reports PTI.
According to the data released by the Reserve Bank of India (RBI), credit provided by the scheduled banks rose to Rs47.5 lakh crore as on 7th September from Rs47.2 lakh crore at the end of 24th August 2012.
The data reflects increased off-take of credit across the board.
Credit growth grew 1.2% as of 7th September from the start of the financial year in April while deposits rose by 3.7%.
At the same time, the time and demand deposits of the scheduled banks rose to Rs76,532 crore at the end of 7th September from Rs759,37 crore at the end of 24th August.
The RBI has projected a growth of 16% in deposits and 17% in advances for this financial year.
Earlier this week, Reserve Bank cut CRR by 0.25% - the percentage of deposits banks keep with central bank - but refrained from reducing lending rates in view high inflation.
The RBI decision, which comes days after a slew of measures taken by the government to push growth, will release Rs17,000 crore of primary liquidity into the system.
The liquidity infusion, RBI had said, would ensure adequate flow of credit to productive sectors of the economy.
In a bid to revive investment across the board, Finance Minister P Chidambaram had asked banks to cut interest rates and keep EMIs at affordable levels to encourage sale of consumer durables.