In a meeting of the Finance Secretary with the heads of banks and financial institutions, the reasons for the fall in bank lending during the first quarter were discussed.

According to informed sources, govt's apathy to extend investment, lack of outlays in infrastructure, prevailing uncertainty in the new WTO environment, slow down of the economy and high bank debts were felt to be as some of the factors responsible for the slower offtake by the banks.

“We will have to see what exactly are the difficulties especially in large industries. But there is good credit offtake in small sector like in agriculture, retail lending in housing. So now we will have to device new thrust areas to improve the credit offtake,” said PS Shenoy CMD, Bank of Baroda

However there is good credit offtake in small sector like in agriculture, retail lending in housing, it is reported.

Concern from the Reserve Bank too: According to the RBI governor Bimal Jalan "Credit offtake is poor. We are concerned over the downturn in industry. We would like industrial recovery to take place.">