For Quick Alerts
For Daily Alerts

Bank loans up 14.2%, y-o-y in two weeks to Dec 13

By Religare

Bank loans up 14.2%, y-o-y in two weeks to Dec 13
India's bank credit picked up slightly in the two weeks to 13 December 2013, signaling a rise in demand and easing liquidity crunch in Asia's third biggest economy.


Bank credit in India rose by 14.9 per cent in the two weeks ended 13 December 2013 from the same period a year ago, the Reserve Bank of India (RBI) said in a report on Friday. In the two weeks ended November 29, 2013, bank loans in India grew by 14.2 per cent from the same period a year ago.

The RBI estimates bank loans in India to grow by 15 per cent in the current fiscal year ending 31 March 2014. A pickup in bank credit signals higher demand and thereby pointing to an easing slowdown in the economy.

With the RBI unexpectedly refraining from another rate hike this month despite rising inflationary pressures, corporate sentiment may pick up, boosting demand for bank credit, going forward.

The RBI left its key repo rate unchanged at 7.75 per cent this month amid optimism over a fall in vegetable prices, coupled with exchange rate stability and lag effects from the two rate hikes since September.

Deposits grew by 17 per cent or by Rs 462.9 billion to Rs 75.24 trillion in the two weeks to 13 December 2013, year on year.

Non-food loans rose by Rs 329.6 billion to Rs 55.94 trillion in the two weeks to 13 December 2013, while food credit expanded by Rs 33.4 billion to Rs 1.08 trillion in the period.

Dion Global Solutions Ltd.

Read more about: bank credit rbi key rates inflation
Company Search
Get Instant News Updates
Notification Settings X
Time Settings
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more