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Bank loans have grown despite rate hike

Recent press reports said that the bank loans have recorded a year-on-year growth of 22.5% with the outstanding bank credit touching Rs 39.57 lakh crore from Rs 32.32 lakh crore during the same period a year ago.

Reports also said that the deposit rates have also gone up along with the increase in loans. The deposits have grown to Rs 48,637 crore in the seven weeks leading to May 21, this year the same period has seen deposits growing by a record Rs 1,08,0040 crore.

Last year, loan growth in the first seven weeks of the fiscal recorded a fall by Rs 14,195 crore, but this year the loans have grown by Rs 15,032 crore.

The deposits on a year-on-year basis have grown up by 17.3% from May 2010 while credit has gone up by 22.27% from the same period a year earlier, data from the Reserve bank of India show. According to the data released by the Reserve bank of India, deposit movement by all commercial banks have gone up by 0.6% that is from 3,246 crore, to Rs 53, 19,225 crore for the forth night ended May 6 from the preceding fortnight. Total loans dipped Rs 5,270.6 crore to Rs 39, 52,113.5 crore during the same period. Loans refer to all kind of loans such as home loan, educational loan, personal loan, vehicle loan etc.

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