|Banks across the nation disbursed an additional Rs. 22,034 crore of loans in a 15 days period from July 27 to August 10. The total advances of scheduled banks rose from Rs. 48.5 lakh crores on July 27th to 48.73 lakh crore on August 10.
The RBI data reflects an improved credit demand both from commercial sector as well as from agricultural sector. During the the banks advances to agriculture sector grew from Rs. 97,787 crore to Rs. 99,783 crore.
Deposits however saw a marginal decline, sceduled banks saw their deposits dipping from Rs. 78,649 crore on July 27 to Rs. 78,368 crore at the end of August 10. RBI's annual projections for credit and deposits is 17% and 16% respectively.
However, current economic situation have reduced the growth in both loans and deposits. Further Crisil has projected a moderate growth rte of 5.5%, which might worsen the situation. The central bank had also revised its GDP projection from 7.3% to 6.5%.
Earlier, FinMin P. Chidambaram had told the banks to reduce the interest rates on loans and bring down EMIs so as to promote spending by consumers.