The buffer of excess SLR securities built up by banks during the period 1997-2003 provided the banks an opportunity to run down these excess investments in the period 2003-04 onwards to fund the step-up in credit growth. Thus, even though overall M3 growth in the current decade has been broadly unchanged compared to the 1990s, growth of bank credit has been significantly higher.
I am happy to share with you that within a period of last five months, we have issued license to 8 StCBs and 105 CCBs. 2  BIS Review 60/2010  However, 9 State Co-operative Banks and 191 Central Co-operative Banks still remain unlicensed. With recapitalization of these institutions, many of them would be eligible for a license.