Credit flow improves: RBI

MUMBAI, July 9: The Reserve Bank of India has claimed that there has been a turnaround in the flow of bank credit to the commerical sector.

An RBI release on Wednesday said that based on the revised data for March 28, 1997, the decline in non-food bank credit between March 28, 1997, and June 20, 1997, was to the tune of Rs 4,064 crore.

In the corresponding period last year, the decline in non-food credit was pegged at Rs 7,220 crore. quot;Hence, there has been a turnaround of Rs 3,156 crore,quot; the RBI release said.

While non-food bank credit declined by Rs 4,064 crore during the first quarter April-June of 1997-98, banks8217; investments in commercial paper CP and other debt instruments and private corporate sector and bills rediscounted have shown a large increase of Rs 2,682 crore compared with a Rs 870 crore rise last year.