The banks have ultimately succeeded in fulfilling the target fixed by RBI for credit growth in the country. The fortnightly situation of scheduled commercial banks in the country has shown that the banks could fulfill the goal of 16% credit increase during the current financial year.
The final data from RBI said that the scheduled banks reported a loan disbursement increase of 16.04% or Rs 4, 32,091 crore, to Rs 31, 24,850 crore till the end of March 12, 2010.
The chief economist, HDFC BankAbheek Barua said, “Given the recent trend of improvement in credit demand, it makes easier for RBI to raise rates going forward,.
Infrastructure sector led the growth in credit off take. The other sectors have also reported a hike in credit, according to top officials of RBI. This credit increase also included car loans.
At the time of hiking the repo rate by 25 basis points, RBIhad said, “As liquidity in the banking system will remain adequate, credit expansion for sustaining the recovery will not be affected”.
Previously the banks were pressurized that they will have to lend Rs. 130k crore to fulfill the goal fixed by RBI. The latest reports show that banks now require to lend Rs 88,364 crore to fulfill the goal by this month end.