The loan portfolio of banking industry has not done up after the Q1 results for this year were declared. The unpaid loans are still below the numbers for June end.
The June quarter reported an increase in credit due to high borrowing by telecom companies for the 3G deal.
As per data published by RBI, loans to persons and businesses (non-food credit) on of August 13 was Rs 3,317,583.15 crore – Rs 30,000 crore below the June end figures.
Bankers also acknowledge privately that the credit demand has slowed down lately, with only the infrastructure sector opting for loan. They also say that with the arrival of base rate, corporates are more reluctant to generate working capital loans from banks.
Deposits have also fallen for banks over the previous fortnight. Total bank deposits as of August 13 were Rs 4,010,052 crore, a decline of Rs 8,016.18 crore as compared to the earlier fortnight’s figures.