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Commercial banks loaned 9.7 billion rupees to private borrowers in the month, the lowest since May 2010, when 7.2 billion rupees was loaned to business.
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In the year to January 2013, credit to private borrowers was up 15.
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5 percent to 2,368.1 billion rupees.
State Credit
But credit to the state from domestic banking units rose by 55.4 billion rupees to 689.4 billion rupees, up 27.6 percent from a year earlier.
Total credit to the government from the banking system rose by a slower 42.
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1 billion rupees to 1,087.3 billion with central bank credit (stock of printed money outstanding) falling to 266.
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3 billion rupees in January from 634.
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0 billion rupees a month earlier.
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Killing central bank credit reduces the outflow of dollars from the economy compared to the inflow, allowing foreign reserves to be built up and the economy kept stable