RBI data shows Bank credit and deposits growing in last fortnight

Source :Sify
Author :Sify
Last Updated: Fri, Jul 3rd, 2020, 12:11:01hrs

The Reserve Bank of India's latest fortnightly tracker shows bank credit and deposits as having grown by 6.18 per cent and 11 per cent to Rs 102.45 lakh crore and Rs 138.67 lakh crore respectively. The data is for the fortnight ending June 19.

In the corresponding period of the previous year (fortnight ending June 21, 2019), bank credit stood at Rs 96.48 lakh crore and deposits at Rs 124.92 lakh crore.

In the previous fortnight ending June 5 2020, advances grew 6.24 per cent and deposits by 11.28 per cent.

The data also shows uptake for personal loans dipping by 10 percent. Pace of personal loans slipped by 10.6 per cent in May 2020, as against a 16.9 percent growth in May 2019.

Bank loan growth to industry decelerated to 1.7 per cent in May from 6.4 per cent in the corresponding month last year.

Loan growth to the services sector slowed down to 11.2 per cent in May, compared with 14.8 per cent a year ago.

Rating agency Crisil in a recent report said bank credit growth is likely to nosedive to a multi-decadal low of 0-1 per cent in 2020-21 even as economic activity owing to the Covid-19 impact.