Rajeev Chandrasekhar's official website - Member of Parliament

 

GOVERNMENT OF INDIA

Ministry of Finance

DEPARTMENT OF FINANCIAL SERVICES

RAJYA SABHA

UNSTARRED QUESTION NO 559

TO BE ANSWERED ON 04.03.2008

Phalguna SAKA Decline in Credit off take of Banks Question.

559.

SHRI RAJEEV CHANDRASEKHAR

 

 

Will the Minister of FINANCE be pleased to state:-

(a) whether it is a fact that the credit off take and credit growth of banks has shown a decline this year; and

(b) if so, the reasons therefor and the details thereof, sector-wise?

ANSWER

The Minister of State in the Ministry of Finance
(Shri Pawan Kumar Bansal)

(a) & (b) : Yes, Sir. There has been a slowdown in non-food credit growth in the first three quarters of the current financial year (2007-08) from the persistent high growth rates that prevailed during the period 2004-07, which is broadly in alignment with the indicative trajectory given in the Annual Policy Statement of Reserve Bank of India for the year 2007-08. Non-food credit extended by scheduled commercial banks (SCBs) increased by Rs.2,22,842 crore (11.8 per cent) during the current financial year (up to January 4, 2008) as compared with the increase of Rs.2,56,693 crore (17.5 per cent) in the corresponding period of 2006-07. Further, there was a decline of Rs.5,237 crore in food credit as compared with an increase of Rs.2,392 crore in the previous year. Provisional information available from select SCBs up to November, 2007 indicates that credit to the industrial sector recorded the highest growth of 25.3 per cent followed by credit to the agriculture sector (21.4 per cent), services sector (20.8 per cent) and personal loans (20.0 per cent).