Loan disbursals, deposit mobilisation high in FY`07: RBI

Loan disbursals by commercial banks grew steadily in 2006-07, with non-food credit alone surging by 31.2 per cent as on 5 January, 2007.

The Reserve Bank of India's macroeconomic and monetary developments report released today, two days before its third quarter review of the monetary policy due on 31 January, said non-food credit stood at Rs407,735 crore as compared with a similar 31.2 per cent growth a year ago at Rs311,013 crore a year ago.

Deposit growth accelerated to 22.5 per cent at Rs438,037 crore as on January 5, as compared to 17.2 per cent growth seen last year.

Relatively, broad money growth remained above indicative trajectory and was 20.4 per cent year on year as compared to 16 per cent a year ago.

Liquidity management emerged to be more complex during the past year with greater variation in market liquidity, largely reflecting variations in cash balances with the governments and capital flows, RBI stated.

The reserve money growth was 20 per cent year on year as on January 19 as compared with 14.9 per cent a year ago.