Mumbai: Bank loans jumped by around Rs80,000 crore in the fortnight to 1 January, with the year-on-year rise at a firm 13.66%, provisional data released by the Reserve Bank of India showed on Wednesday.
Analysts say credit growth is picking up and this data is not likely to be a one-off thing.
“Credit offtake on an average was (Rs)20,000 crore in one fortnight in December in the past years. So, this data is clearly surprising,” said A. Prasanna, economist at ICICI Securities Primary Dealership Ltd.
Outstanding credit was at Rs30.2 trillion as on 1 January.
While a small part of the sharp rise could be attributed to balancesheet expansion by banks that happens typically every quarter end, most of the rise was due to genuine demand, bankers said.
“It seems like a disbursements of a lot of sanctions that happened before got bunched up,” Prasanna said.
The Reserve Bank of India (RBI) has set a target of 18% credit growth for 2009-10 and the target is likely to be met given the pick up in credit growth.
Bank credit had risen 11.3% on year as of 18 December, according to the final data released by the RBI.
The final figures for the two week to 1 January would be released by the central bank in its weekly statistical supplement on Friday.
Deposits were up 17.59% from a year earlier. Banks’ investments in government approved securities, rose 22.85% during the year, the RBI data showed.