Credit to private sector gains by Rs. 38 b in Oct. but lower than Sept.

Monday, 18 December 2023 01:46 - - {{hitsCtrl.values.hits}}

Continuing the upward momentum, outstanding credit extended to the private sector in October has increased by Rs. 38 billion, according to latest data released by the Central Bank.

The cumulative figure stood at Rs. 7.206 trillion as against Rs. 7.168 trillion in September. In August it was Rs. 7.09 trillion.

Annual growth as at October was 9.8% as against a decline of 5.4% in September and 4.3% dip in October last year.

A pick up in private sector credit was first seen in June with an increase of Rs. 74 billion and again in September by Rs. 70 billion but October gain was lower.

The Central Bank has reduced the policy interest rates by a mega 650 basis points within a space of six months from June 2023.

With the moderation of market lending interest rates, CBSL expects credit to the private sector to increase further in the period ahead, thereby supporting the envisaged rebound of domestic economic activity.

Net Credit to the Government from the banking system in October decreased by Rs. 94.5 billion and outstanding credit to public corporations increased by Rs. 11.1 billion according to CBSL data.

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