SHARP RISE IN BANK CREDIT GROWTH

Business Today - - CONTENTS - - Anand Adhikari

THERE’S good news for the econ­omy at last. Bank credit, an in­di­ca­tor of eco­nomic ac­tiv­ity, rose 11.30 per cent in Septem­ber this year. The out­stand­ing gross credit at the end of the month was ` 80.25 lakh crore, ac­cord­ing to the lat­est Re­serve Bank of In­dia data. While lend­ing to the mi­cro and small sec­tor shrunk, lend­ing to medium and large cor­po­rates showed smart re­cov­ery. The high­est gains in the ser­vices sec­tor were in trans­porta­tion, com­puter soft­ware, tourism and ho­tels; and in the in­dus­try space, they were in au­to­mo­bile, elec­tron­ics, ce­ment, phar­ma­ceu­ti­cal, fer­tiliser and in­fra­struc­ture, es­pe­cially roads. In the last five years, re­tail lend­ing had com­pen­sated for the low growth in cor­po­rate credit. It is now time for pick-up in cor­po­rate credit. Ca­pac­ity util­i­sa­tion lev­els are grad­u­ally ris­ing and very soon there are ex­pec­ta­tions of cor­po­rates go­ing for ex­pan­sion.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.