Bank credit de-grew in the first fortnight of the new calendar year even as they stepped up investment in government securities and State Development Loans, according to Reserve Bank of India’s Scheduled Banks’ Statement of Position in India.
Outstanding credit of all scheduled banks declined by ₹19,685.50 crore, with banking experts stating that it could be due to short-term corporate loans extend by Banks in the run up to the third quarter-end getting paid off.
Investments by banks in G-Secs and State Development Loans surged by ₹1,04,685 crore.
Bank deposits declined by ₹56,590 crore in the reporting fortnight, per RBI data.