RBI Says Lending To Sensitive Sector Declined In 2006-07

Mumbai: Lending to sensitive sectors by banks displayed a deceleration in 2006-07, according to the Report on Trends and Progress of Banking in India 2006-07 released by the Reserve Bank of India (RBI) on Nov 27. Lending to the capital market, real estate market, and commodities is considered as lending to sensitive sectors. Such lending increased at 41 per cent in 2006-07 compared to 74 per cent the previous year. About 92 per cent of this amount went to the real estate sector. Just about 7.6 per cent of about Rs 30,637 crore was lent to the capital market segments. Lending to sensitive sectors comprise about 20.4 per cent of the aggregate loans and advances of all banks.