Growth in credit to private sector flat at 7.5% in October
Monday, 23 December 2013 02:00
-
- {{hitsCtrl.values.hits}}
Credit to the private sector has grown at a very slow pace of 7.5% in October, marking the second month of low demand.
As per Central Bank data, credit to the private sector totalled Rs. 2.49 trillion as at end October, as against Rs. 2.46 trillion in September up by 7.5%. In August the growth was 7.9%.
In October 2012 credit to private sector was up 25.1% and amounted to Rs. 2.32 trillion. In absolute terms, credit extended to the private sector increased by Rs. 27.2 billion in October as opposed to Rs. 5 billion between August and September 2013. In its December monetary policy review, the Central Bank said credit extended to the private sector by banks “picked up strongly” in October 2013.
“These factors augur well for future economic growth, while continued downward adjustments to longer term market interest rates would bolster market confidence and nurture positive investor sentiments,” it added.
The Central Bank also said credit from Domestic Banking Units (DBUs) of commercial banks contributed around Rs. 20.1 billion to the absolute increase in credit during the month, similar to the levels witnessed in September 2013, signalling a take-off in credit disbursements.
Credit granted to public corporations contracted for the second consecutive month, with repayments during October 2013 amounting to Rs. 12.5 billion.
