The revival in economy has seen credit offtake take a rise for many banks. These banks are however quite conscious while lending to real estate and consumer durables as well as unsecured loans. The credit card disbursals have seen a dip by as much as 27% to Rs 19,579 crore year-on-year as on 21 May, 2010.

As per First Quarter Review 2010-11 released by Reserve Bank of India, banks have refrained themselves from increasing the credit card limit while they intend to expand in infrastructure loans.

The interest of banks to lend to other sectors has been quite appealing with infrastructure (44.3%), food processing (27.2%) and iron & steel (26.2%). Education loans have shown a commendable rise by 28.8% Rs 36,961 crore.

"Besides strong economic activity, credit raised by telecom companies to pay for the 3G and BWA spectrum contributed to the high rate of credit growth observed during quarter. Money supply growth, however, was below the indicative trajectory of 17%, set out in April, 2010. The deceleration was largely due to the slowdown in the growth rate of aggregate deposits with banks," says the RBI report.