Banks loan growth at 7.5 per cent in fortnight to Jan 2: RBI data

According to the Reserve Bank data, in the fortnight to January 2, the bank credit grew by 7.57 per cent reaching Rs 100.44 lakh crore (US$ 1.43 trillion) while deposits increased by 9.77 per cent to Rs 132.10 lakh crore (US$ 1.89 trillion). The banks loan in the year-ago period, stood at Rs 93.37 lakh crore (US$ 1.33 trillion) while deposits at Rs 120.33 lakh crore (US$ 1.72 trillion).

The credit had grown by 7.10 per cent reaching Rs 99.47 lakh crore (US$ 1.42 trillion) and deposits had increased by 10.09 per cent to Rs 130.08 lakh crore (US$ 1.86 trillion), in the previous fortnight ended December 20.

Though, banks' credit growth slowed to 7.2 per cent to Rs 86.73 lakh crore (US$ 1.24 trillion) in November 2019 from 13.8 per cent to Rs 80.93 lakh crore (US$ 1.15 trillion) in the year-ago period.

For the industry, loan growth decreased to 2.4 per cent at Rs 27.72 lakh crore (US$ 396.6 billion) in November from 4 per cent in the corresponding month of 2018.

In November 2019, credit to agriculture and allied activities slowed to 6.5 per cent from 7.7 per cent last year. There was sharp decrease in the services sector to 4.8 per cent from 28.1 per cent last year.

Personal loans witnessed a marginally growth at lower rate of 16.4 per cent in November 2019 as compared with 17.2 per cent, according to the RBI data.

Rating agency ICRA in its recent report had said 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 financial year.

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