New Delhi: Credit flow to the commercial sector has come down from 14.2 percent in April to 11.1 percent in October on account of weak demand for banking funds.
"Credit growth of commercial banks continued to remain weak because of low demand for credit. The corporate sector is moving to alternative sources for their funding needs and also tapping the commercial paper market," Minister of State for Finance Jayant Sinha said in a written reply in the Rajya Sabha.
He said there has been a deceleration of bank credit off- take by medium and large industries, services and priority sector in October 2014 as compared to October 2013.
In October 2013, the bank credit growth was 17 percent.
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