The credit to GDP ratio which stood at about five per cent in 1950–51 improved to about 25 per cent in 2000–01 and further to about 52 per cent at the end of 2011–12 (Chart 1).
The pre-emption by way of Statutory Liquidity Ratio (SLR) has declined considerably from 38.5 per cent in 1991 to 23.0 per cent of the Net Demand & Time Liabilities (NDTL) in 2013 (Chart 2). All the while, the banking sector has been robust, meeting all prudential standards as per best international practice.