The flow of resources to the commercial sector fell by 43 per cent to Rs 90,666 crore during the first quarter of the current financial year, as against Rs 159,121 crore during the corresponding period last year.
According to the latest data released by the Reserve Bank of India today the decrease was seen from all sources — non-food bank credit, flow of resources from non-bank domestic sources and external sources.
The steepest decline was seen in case of adjusted non-food credit (ANFC) flow, which fell by 81.4 per cent to Rs 5,697 crore in the June 2009 quarter as against Rs 30,631 crore in June 2008.
Within this, the non-food credit flow decreased by 68.59 per cent to Rs 11,735 crore, as against Rs 37,364 crore in the first quarter of 2008-09, partly due to lower demand for funds from public sector oil and fertilizer companies.
Meanwhile, non-banking domestic sources and foreign sources saw a decline of 17.05 per cent and 59.13 per cent, respectively. In case of domestic sources, the flow during the first quarter of this year was estimated at Rs 63,984 crore.