Aug 19, 2013 (LBO) – Credit to the state spiked in June 2013 to 36.7 billion rupees, up from only 5.7 billion in May, crowding out loans to private citizens to 11.5 billion rupees from 18.3 billion a month earlier, official data showed. Central Bank credit to government fell to 233.2 billion rupees in June from 238.2 billion rupees a month earlier, but net foreign assets of the monetary authority fell to 366.0 billion rupees from 392.5 billion rupees pointing forex reserve losses through other means.
Update II Credit to the central government rose to 1,259.1 billion rupees in June, up 24.6 percent from a year earlier, picking up pace from 19.3 percent in May. Borrowings from local currency books rose to 883.3 billion rupees, up from 845.7 billion rupees.
Credit to state enterprises rose to 338.9 billion rupees up 5.7 billion rupees from May but June also saw some currency depreciation and two thirds of SOE credit is forex denominated.
SOE credit was up 23 percent in June from a year earlier, slowing from 24.9 percent a month earlier.
Credit to private