Analysts have attributed the sudden jump in credit offtake to the window- dressing resorted to by banks in order to shore up the asset side of their balance sheets. "This is common practice among banks at the end of the first half of any financial year. The idea is to show better working results," an analyst said. On the liability front, aggregate bank deposits have registered a staggering growth of Rs 58,596 crore (9.7 per cent) against Rs 40,949 crore (8.1 per cent) in April-September last fiscal.

Foreign exchange reserves at the end of the first half of 1998-99 stood at $29.18 billion -- down by $185 million from the end-March level. Bank investments during the first half of the current yearwere up by 15 per cent (Rs 32,855 crore), fuelled largely by subscription to corporate paper.

The year-on-year growth in bank credit stood at 17.3 per cent (Rs 48,396 crore). This is against a year-on-year growth of 21.5 per cent (Rs 1,17,458 crore) in aggregate deposits.