Accordingly, there was a sudden rush for bank credit from the various sectors of the economy and there were perceptions of credit crunch. Moreover, in view of incomplete pass-through to domestic petroleum prices in the first half of 2008-09 (before the sharp correction in international crude oil prices), there was a large demand from petroleum companies for bank credit.
For almost similar reasons, fertilizer companies also had a large resort to bank credit. Reflecting these factors, growth in non-food bank credit (y-o-y) accelerated to around 30 per cent by October 2008. Nonetheless, there was a perception that there was credit crunch during this period, which could be attributed to a large decline in non-bank sources of funding.