Bank credit grows 7.10 per cent to Rs 99.47 lakh crore; deposits up 10 per cent to Rs 130 lakh crore

According to the latest Reserve Bank data, banks' credit and deposits increased by 7.10 per cent and 10.09 per cent to reach Rs 99.47 lakh crore (US$ 1.42 trillion) and Rs 130.08 lakh crore (US$ 1.86 trillion) respectively, in the fortnight ended December 20. 

Though, banks' advances stood at Rs 92.87 lakh crore (US$ 1.33 trillion), while deposits were at Rs 118.16 lakh crore (US$ 1.69 trillion) during the year-ago fortnight.

The credit witnessed a growth by 7.91 per cent to Rs 99.34 lakh crore (US$ 1.42 trillion) and deposits increased by 10.27 per cent to Rs 131.05 lakh crore (US$ 1.88 trillion) in the previous fortnight ended December 6.

Though, on a year-on-year basis, the bank's credit growth slowed to 7.2 per cent to Rs 86.73 lakh crore (US$ 1.24 trillion) in November 2019 comparatively to the 13.8 per cent increase to Rs 80.93 lakh crore (US$ 1.16 trillion) in the year-ago period.

There was decrease by 2.4 per cent in loans to industry growth reaching Rs 27.72 lakh crore (US$ 396.62 billion) in November from 4 per cent in the corresponding month of 2018.

During the month, credit to agriculture and allied activities decreased to 6.5 per cent from 7.7 per cent last year. The growth in the services sector decelerated sharply to 4.8 per cent from 28.1 per cent last year and the growth in personal loans was at a lower rate of 16.4 per cent in November 2019 as compared to 17.2 per cent earlier, according to the RBI data.

According to Rating agency ICRA, credit expansion may drop to a six-decade low of 6.5-7 per cent in 2019-20 compared to 13.3 per cent in the previous year.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.