Demand for loans has been picking up since August 2009. Loan disbursements have risen in the last three months.

However, the demand has not been consistent. For instance, while the bank loans witnessed a slight dip in the fortnight ended October 23, they have again risen in the fortnight ended November 6.

Between October 30 and November 6, loans have decreased by Rs.10,065 crore. However, they increased by Rs. 17,047 crore during the fortnight between October 23 and November 6.

As per the latest RBI data, total loans including food credit-loans extended to Food Corporation of India-and non-food credit stood at Rs 28,68,565 crore as on October 23.

Both food and non food credit dropped in the mentioned fortnight by Rs 6,708 crore and Rs. 15,401 crore, respectively.

The growth in non-food credit was 10 percent year-on-year as against 30 percent last year. Many banks have reduced their loan growth targets for the year, but a few bankers are optimistic about the loan growth in the second half of the fiscal.