Date:31/10/2004 URL: http://www.thehindubusinessline.com/2004/10/31/stories/2004103102030100.htm

Back Bank credit up by Rs 35,113 cr

Our Bureau

Mumbai , Oct. 30

BANK credit surged by over Rs 35,113 crore to Rs 9,71,018 crore for the fortnight ended October 15, according to RBI data released on Saturday. Non-food credit jumped by Rs 37,792 crore to touch Rs 9,35,058 crore while food credit declined by Rs 2,679 crore to Rs 35,959 crore.

Bank credit showed a year-on-year growth of 28.8 per cent.

Bankers said the growth in bank credit is fuelled by increased credit offtake in the economy. Short-term credit has picked up as disbursals by banks to corporates have increased. With bond yields rising since the beginning of this fiscal, bank credit has become cheaper for companies.

Yield on the 10-year benchmark paper 7.37 per cent 2014 paper shot up intra-day to 6.99 per cent on October 28.

Aggregate bank deposits also grew by Rs 4,218 crore to Rs 1,605,233 crore with a year-on-year growth of 15.9 per cent.