Bank credit rose 6.74% to Rs 102.69 lakh crore; deposits increase 9.82%

MUMBAI: Bank Credit and deposits increased by 6.74 per cent and 9.82 per cent to Rs 102.69 lakh crore and Rs 137.11 lakh crore for fourteen days ending April 24, latest data from RBI Viste. For fourteen days, bank loans had stood at Rs 96.20 lakh crore and deposits at Rs 124.83 lakh crore.

In the previous two weeks ending April 10, 2020, bank credit had grown by 7.20 per cent. And deposits with 9.45 per cent.

In fiscal policy, which ended March 31, 2020, bank loans had fallen to 6.14 percent, a nearly fifty year low due to slower economic growth, lower demand and as banks remained at risk.

Loan growth in FY20 was the slowest since fiscal policy ended on March 31, 1962, when it rose by 5.38 percent.

During FY20, bank deposit grew by 7.93 per cent to Rs 135.71 lakh crore against Rs 125.73 lakh crore.

In March 2020, the growth in bank credit for food did not slow down to 6.7 per cent. From 12.3 per cent. Last month due to a sharp decline in banks’ progress to industries and services sectors, according to RBI data.

The banks ’non-food credit stood at Rs 92.63 lakh crore in March against Rs 86.74 lakh crore in the year-ago period.

Loan growth for the service sector fell sharply to 7.4 per cent. In March 2020, from 17.8 per cent. In March 2019.

Credit growth for non-banking financial companies (NBFCs) slowed to 25.9 percent from 29.2 percent in March 2019 Reserve Bank data showed.

Growth in industry progress slowed to 0.7 percent in March 2020 from 6.9 percent growth in March 2019.

In the industry, credit growth for beverages & tobacco, mining and quarrying, oil, coal products and nuclear fuels, cement and cement products and vehicles, vehicle parts and transport equipment has accelerated.

Growth in agricultural progress and allied activity fell to 4.2 per cent. In March 2020, from 7.9 per cent. In March 2019.

Growth in personal loans dropped marginally to 15 percent in March 2020 from 16.4 percent in March 2019, RBI data showed.

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