Date:03/11/2007 URL: http://www.thehindubusinessline.com/2007/11/03/stories/2007110351790602.htm

Back Non-food bank credit decreases

Mumbai, Nov. 2

Bank credit decreased by Rs 6,224 crore to touch Rs 20,19,175 crore for the fortnight ended October 12, 2007. Of this non-food credit decreased by Rs 6,234 crore to touch Rs 19,82,156 crore. However, food credit increased by Rs 11 crore to touch Rs 37, 019 crore.

According to a senior official from a public sector bank, this decline could be what is called the `September effect'. "At the end of the half year, banks tend to show high growth in both advances and deposits in their account books. So, in the period that follows immediately there could be a decline," he explained. The increase in food credit could be the actual increase, he added. - Our Bureau