MUMBAI, Dec 25: Export credit by commercial banks for the year 1996-97 fell below the target of 12 per cent owing to the sluggish export growth during the year. Export credit declined from Rs 31,745 crore (12.6 per cent of the net bank credit) at end-March 1996 to Rs 30,112 crore (10.9 per cent of the bank credit) at end-March 1997.

During the first half of 1997-98, export credit stood at Rs 23,323 crore, said RBI Report on Currency and Finance, 1996-97. According to the report, export credit refinance limits of banks declined sharply by Rs 7,488 crore from Rs 14,142 crore as at end-March 1996 (54 per cent of export credit eligible for refinance) to Rs 6654 crore (26.1 per cent) on March, 1997 and further to Rs 2074 crore (8.9 per cent).

The decline was because of the rationalisation of export credit refinance. Banks' dependence on RBI's refinance window was also considerably low throughout 1996-97 and 1997-98 due to the easy liquidity condition.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.