Credit growth of banks accelerates 16.8% in December quarter: RBI
- IBEF
- February 28, 2023
According to data by the Reserve Bank of India (RBI), in the December quarter, lending growth at Indian banks increased to 16.8%. The growth of bank credit was 8.4% in the quarter that ended in December 2021 and 17.2% in the quarter that ended in September 2022. Bank branches in urban areas, which accounted for roughly 60% of all bank loans, drove the credit expansion. Moreover, urban, semi-urban, or rural cities also saw a double-digit credit growth. Credit portfolio growth for state-owned lenders accelerated in 2022, increasing by 15.7% compared to 4.7% in 2021. However, corresponding growth for private banks rose to 19.1% from 13.1% in 2021, remaining stronger.
Most banks are presently expecting double-digit credit growth as credit offtake has strengthened for the current fiscal year ending in March 2023. Banks' aggregate deposits climbed by 10.3% year on year in the December quarter, up from 9.6% in the previous year's same quarter, driven by term deposit growth. In the December quarter, deposits at state-run banks increased by 8.8% year over year, which was less than the 13.2% growth of deposits at private sector banks. In the December quarter, banks' credit-deposit (C-D) ratio increased further to 75.9%, up from 74.8% in the prior quarter and 71.6% in the quarter ending December 2021.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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