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Credit Trend

Feb 26, 2012 (LBO) - Loans from commercial banks to private borrowers fell to 9.9 billion rupees in December 2012 from 24.1 billion rupees a month earlier while credit to the state soared by 76.1 billion rupees, official data shows.
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In February the government raised 153 million dollars from a floating rate dollar bond sold mainly to domestic banks and other buyers. Earlier rupee securities were sold to foreign buyers.

A fall in imports, especially vehicles have reduced revenues to the state. Tax spenders have also risen with around 50,000 unemployable graduates being given state employment recently. Credit to private borrowers grew to 2,358.4 billion rupees in December 2012 up 17.
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6 percent from a year earlier.

Rupee denominated credit to the state from banks rose 44.7 billion rupees to 634 billion rupees during the month of December, rising 34.
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1 percent from a year earlier.

Dollar debt narrowed to 132.4 billion rupees from 135.6 billion rupees a month earlier, and was up 35 percent from a year earlier. The exchange rate strengthened in December.

Credit to state enterprises rose 31.4 billion rupees to 292.5 billion rupe

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