Credit to private business rose 20.7 percent to 2,348.5 billion rupees in November 2012 from a year earlier, Central Bank data showed.Rupee denominated loans rose 25.8 billion rupees to 2,157.8 billion rupees while loans from dollar books fell to 190.7 billion rupees from 192.5 billion rupees in October.
In October private businesses borrowed 25.9 billion rupees from commercial banks amid a net contraction in state credit.
In November credit to state expanded 18.8 billion rupees against a 9.7 billion rupee contraction in October led by state enterprises.
Loans to state enterprises picked u 6.5 billion rupees to 261.1 billion rupees in November with rupee denominated loans rising from 184.6 billion to 188.8 billion rupees.
Central Bank credit to government (printed money) also rose 10 billion rupees to 330 billion rupees.
Total credit from the commercial banking system including central bank credit was 42.9 billion rupees in November, in line with the levels seen before June 2011 before a balance of payments crisis was triggered.
In October private businesses borrowed 25.9 billion rupees from commercial banks amid a net contraction in state credit.
In November credit to state expanded 18.8 billion rupees against a 9.7 billion rupee contraction in October led by state enterprises.
Loans to state enterprises picked u 6.5 billion rupees to 261.1 billion rupees in November with rupee denominated loans rising from 184.6 billion to 188.8 billion rupees.
Central Bank credit to government (printed money) also rose 10 billion rupees to 330 billion rupees.
Total credit from the commercial banking system including central bank credit was 42.9 billion rupees in November, in line with the levels seen before June 2011 before a balance of payments crisis was triggered.
A balance of payments crisis is triggered in the monetary system by injecting large volumes of central bank credit (printed money) in the banking system which pushes credit and imports to unsustainable levels.
Analysts say as long as bank loan money raised through deposits and loan repayments, the exchange rate remains fixed.
Total credit to state and business rose from around 40 to 60 billion rupees before sterilized interventions began to over 100 billion rupees a month when forex sales were sterilized.
Credit peaked at 140.9 billion rupees in February when rates were raised and the currency floated
