ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846
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The Squeeze May Work

The Squeeze May Work

The seasonal credit expansion, which at the Rs 320-crore mark on February 24 was considered by the Reserve Bank to be somewhat more than warranted by the availability of goods touched the Rs 420-crore mark on April 24 without any tangible corresponding improvement in the supply of goods. By March 31—the close of the fiscal year which brings about a rush for tax payments—credit expansion will have crossed the Rs 420-crore mark. And, according to available data, banks, and mainly the State Bank, increased their borrowings from the Reserve Bank by Rs 23 crores to Rs 140 crores during the week ended March 31.

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