Bank credit grows by 21.5 per centFebruary 28th, 2008 - 5:18 pm ICT by admin
New Delhi, Feb 28, (ANI): According to the Economic Survey 2007-08, Bank credit has grown by 21.5 per cent upto January 4, 2008.
The non-food credit by scheduled commercial banks (SCBs) was well below the indicative target of 24-25 per cent for 2007-06. The credit deposit ratio was 71.8 per cent compared to 74 per cent in the last fiscal year.
Priority sectors credit increased by 20.5 per cent by November 2007over the corresponding month of the previous year. The flow of credit to agricultural sector was Rs.1, 377 billion (during this period of 8 months) which is about 61 per cent of the target for the year. In the micro finance sector, bank loan of Rs.200 billion was availed of by 30.51 lakh Self Help Groups (SHG) with the average bank loan availed of per SHG being Rs. 65,924. The outreach of the SHG - bank linkage programme has enabled an estimated 42.7 million poor households to gain access to micro finance.
The Current Financial Year witnessed a spurt in Statutory Liquidity Ratio (SLR) investments of the commercial banks due to continued higher aggregate deposit mobilization coupled with lower offtake of credit. On a year-to-year basis as on January 4, 2008, the increase in SLR investments was Rs. 1,89,3490 million. The investment deposit ratio as on this date was 32 per cent, the same as the last year figure.
Under the Rural Infrastructure Development Fund of NABARD, the amount sanctioned and disbursed to the State Governments as on January 11,20080 was Rs.69.8830 million and Rs.41.360 crore respectively. During 2007-08 (up to January 11, 2008), the amount sanctioned and disbursed was Rs.8,5920 million and Rs.38000 million respectively, says the Economic Survey 2007-08.
Efforts to widen and intensify the credit delivery mechanism have continued. To ensure steady flow of credit to various segments of SSI, new instructions were given in April and July 2007. Convenor banks have been advised to initiate action for identifying at least one district in their State/Union Territory for 100 per cent financial inclusion. (ANI)
Tags: agricultural sector, commercial banks, credit delivery, crore, delivery mechanism, economic survey, food credit, infrastructure development, micro finance sector, offtake, poor households, priority sectors, rs 200, rs 65, rs 8, self help groups, state governments, statutory liquidity ratio, steady flow, target