Non-food credit fell 376.01 billion rupees to 101.83 trillion rupees, while food credit rose 165.91 billion rupees to 692.35 billion rupees.
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Indian banks' loans rose 6.5% in the two weeks to May 8 from a year earlier, while deposits increased 10.6%, the Reserve Bank of India's weekly statistical supplement showed on Friday.
Outstanding loans fell 210.10 billion rupees to 102.52 trillion rupees ($1.35 trillion) in the two weeks.
Bank deposits rose 1.27 trillion rupees to 138.50 trillion rupees.