Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Sign of recovery or meaningless spurt?
Dec 24, 2015


Talking of a turn in cycles, the fortnight to 11 December has seen a sudden but definite spurt in bank credit. Bank credit grew 11% YoY during this period. As the chart shows, this is well beyond the growth that was being logged in during the preceding part of this fiscal.

This might be too small a period to draw any major conclusions from. Nonetheless, bank credit growth is an important data point. It is usually the first to pick up during a turn in the economic cycle. And reports indicate that there has been a definite uptick here since the Reserve Bank of India cut repo rates.

Another point to consider before taking this data too seriously is that this increase must come from higher lending to companies rather than to individuals for it to be meaningful from an economic cycle point of view.



Data Source:RBI, Livemint

This Chart Of The Day was published in The 5 Minute WrapUp - Should the GST Bill Change the Way You Invest?

Equitymaster requests your view! Post a comment on "Sign of recovery or meaningless spurt?". Click here!

  

Our Most Popular Charts

India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get this Special Report,
The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms

MARKET STATS