Though the mood in the economy is sombre, banks have lent Rs 48,938 crore more in the financial year so far (up to July 26, 2013) against the corresponding year-ago period.
Most of the loans have been made to the micro, small and medium enterprises, agriculture and allied activities, commercial real estate, housing, personal loans and retail trade.
Credit appetite from the large corporates continues to be lacklustre, said a senior public sector bank official.
According to RBI’s data on scheduled bank’s statement of position in India, in the financial year so far (up to July 26) banks lent Rs 1,48,186 crore against Rs 99,248 crore in the corresponding year-ago period.
As on July 26, 2013, banks had loans aggregating Rs 55,78,145 crore (Rs 48,53,031 crore as on July 27, 2012), showing a year-on-year growth of close to 15 per cent.
The RBI has projected a credit growth at 15 per cent for banks in FY2014.
In its first quarter review of monetary policy, the RBI said, “The investment climate remains weak and risk aversion continues to stall investment plans. The outlook for investment is inhibited by cost and time overruns, high leverage, deteriorating cash flows, erosion of asset quality and muted credit confidence.”
Deposits
Accretion to deposits in the banking system in the financial year so far is a tad lower at Rs 3,43,611 crore against Rs 3,48,101 crore in the year-ago period. As on July 26, 2013, banks had deposits aggregating Rs 72,86,612 crore (Rs 64,25,894 crore as on July 27, 2012), showing a year-on-year growth of 13 per cent.