SHARP RISE IN BANK CREDIT GROWTH
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.